Toddler Treasures

1. Analysis: What factors could have contributed to the CFOs decision to adopt a standard costing system.

2. Determine the following variances for the 220,000 square yards of blanket material that was purchased, and the 110,000 square yards of blanket material used:

a. Direct Material Price Variance

b. Direct Material Quantity Variance

3. Determine the following variances for Direct Labor in May:

a. Direct Labor Price Variance

b. Direct Labor Quantity Variance

4. Determine the Manufacturing Overhead Variances for May:

a. Fixed

b. Variable

c. Total

5. Analysis: What reasons might have led the product manager to change to the new and more expensive blanket material (use financial information)?