Question: Kilmatin Fabrics manufactures a specialty monogrammed blanket. The following are the cost standar...

Kilmatin Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for this blanket

Data table

Direct materials (fabric). . . . . . . . . . . . . . . . . . . . . .

5.0 yards per blanket at $9.50 per yard

Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0.5 direct labor hours per blanket at $17.00 per hour

Actual results from last month's production of1,600

blankets are as follows:

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DATA

Actual cost of 8,640 yards of direct material (fabric) purchased. . . . . .

$77,760

Actual yards of direct material (fabric) used. . . . . . . . . . . . . . . . . . .

8,190

Actual wages for 930 hours worked. . . . . . . . . . . . . . . . . . . . . . . . . . . .

$15,252

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Requirement 1.What is the standard direct material cost for one blanket? (Round your answer to the nearest cent.)

The standard direct material cost for one blanket is $

47.50

.

Requirement 2. What is the actual cost per yard of fabric purchased? (Round your answer to the nearest cent.)

The actual cost per yard of fabric purchased $

9.00

.

Requirement 3. Calculate the direct material price and quantity variances. (Enter the variances as positive numbers. Enter currency amounts in the formula to the nearest cent and then round the final variance amounts to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials)

First determine the formula for the price variance, then compute the price variance for direct materials.

	Actual quantity purchased	x (	Standard price	-	Actual price	)	=	DM price variance
	8,640	x (	$9.50	-	$9.00	)	=	$4,320	F

Determine the formula for the quantity variance, then compute the quantity variance for direct materials.

		x (		-		)	=	DM quantity variance
		x (		-		)	=

Requirements 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? Requirements 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