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