Kelsey Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for this blanket: Actual results from last month's production of 2,300 blankets are as follows: EEl (Click the icon to view the actual results.) Read the requirements (Click the icon to view the standards.) Direct materials (fabric) . .. . . . . . 5.0 yards per blanket at $9.50 per yard Direct labor........___.. . .. . . . . . . .._... . . .2.5 direct labor hours per blanket at $18.00 per hour Print Done Actual cost of 12,190 yards of direct material (fabric) purchased.. 110,929 Actual yards of direct material (fabric) used. . . . . . . . . . 11,540 Actual wages for 5,860 hours worked. . . . . . . . . . . . . .. . . . . . $ 101,964 Print Done 1. 2. 3. 4. 5. 6. 7. What is the standard direct material cost for one blanket? What is the actual cost per yard of fabric purchased? Calculate the direct material price and quantity variances. What is the standard direct labor cost for one blanket? What is the actual direct labor cost per hour? Calculate the direct labor rate and efficiency variances. Analyze each variance and speculate as to what may have caused that variance Look at all four variances together (the big picture). How might they all be related? What variance is very likely to have caused the other variances? 8