Kilmartin Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for this blanket: (Click the icon to view the standards.) Actual results from last month's production of 2,000 blankets are as follows: 2 (Click the icon to view the actual results.) Direct materials (fabric) ............... 6.0 yards per blanket at $7.00 per yard 2.5 direct labor hours per blanket at $13.00 per hour Direct labor Read the requirements. Print Done Requirement 7. Analyze each variance and speculate as to what may have caused that variance. DM price variance and The waste. DM quantity variance may have been caused by The VDL rate variance and VDL efficiency variance may have been caused by do not work as quickly as a more experienced workforce 1. What is the standard direct material cost for one blanket? 2. What is the actual cost per yard of fabric purchased? 3. Calculate the direct material price and quantity variances. 4. What is the standard direct labor cost for one blanket? 5. What is the actual direct labor cost per hour? 6. Calculate the direct labor rate and efficiency variances 7. Analyze each variance and speculate as to what may have caused that variance. 8. 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? Requirement 8. Look at all four variances together (the big picture). How might they all be related? What variance is very likely to have caused One possible cause of all four variances is workforce was used, the DL rate variance was variance. This would create however, given a Kilmartin Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for this blanket: (Click the icon to view the standards.) Actual results from last month's production of 2,000 blankets are as follows: 2 (Click the icon to view the actual results.) Direct materials (fabric) ............... 6.0 yards per blanket at $7.00 per yard 2.5 direct labor hours per blanket at $13.00 per hour Direct labor Read the requirements. Print Done Requirement 7. Analyze each variance and speculate as to what may have caused that variance. DM price variance and The waste. DM quantity variance may have been caused by The VDL rate variance and VDL efficiency variance may have been caused by do not work as quickly as a more experienced workforce 1. What is the standard direct material cost for one blanket? 2. What is the actual cost per yard of fabric purchased? 3. Calculate the direct material price and quantity variances. 4. What is the standard direct labor cost for one blanket? 5. What is the actual direct labor cost per hour? 6. Calculate the direct labor rate and efficiency variances 7. Analyze each variance and speculate as to what may have caused that variance. 8. 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? Requirement 8. Look at all four variances together (the big picture). How might they all be related? What variance is very likely to have caused One possible cause of all four variances is workforce was used, the DL rate variance was variance. This would create however, given a
