Assignment
1. Gandolph:
Gandolph Game Company has established the following standards for the prime costs of one unit of its chief product, dartboards.
Standard Cost Standard Quantity Standard Price/Rate
Direct Material $14 8 kg $1.75 per kg
Direct Labor $2 .25 hr $8 per hour
During September, Gandolph purchased 320,000 kg of DM at a total cost of $608,000. The total wages for September were $84,000, 90% of which were for DL. Gandolph manufactured 38,000 dartboards during September, using 285,000 kg of DM and 10,000 hours.
Compute:
Material Variances
Labor Variances
2. Manhattan:
During March Manhattan Fabrics Corporation manufactured 1,000 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to March.
DM purchased: 36,000 yards @ $1.38 per yard
DM used: 19,000 yards @ $1.38 per yard
DL: 4,200 hours @ $9.15 per hour
The standard prime costs for one unit of Stylex are as follows:
DM 20 yards @ $1.35 per yard $27
DL: 4 hours @ $9 per hour $36
Total prime costs per unit of output $63
Compute:
Material Variances
Labor Variances