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The Johnson Company manufactures designer blankets for international distribution. The standard costs for the manufacturer of these high-quality blankets are: Standard Costs Actual Costs Direct
The Johnson Company manufactures designer blankets for international distribution. The standard costs for the manufacturer of these high-quality blankets are:
Standard Costs Actual Costs
Direct Materials 4,000 pounds at $42 4,300 pounds at $40
Direct Labor 5,200 hours at $15 5,500 hours at $14
Instructions:
- Determine the (a) direct materials price variance, (b) direct materials quantity variance, and (c) total direct materials cost variance for the designer blankets.
- Determine the (a) direct labor rate variance, (b) direct labor time variance, and (c) the total direct labor cost variance for the designer blankets.
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