Vitalite, Inc., produces a number of products, including a body-wrap kit. Standa
ID: 2374906 • Letter: V
Question
Vitalite, Inc., produces a number of products, including a body-wrap kit. Standard variable costs relating to a single kit are given below:
During August, 500 kits were manufactured and sold. Selected information relating to the month%u2019s production is given below:
What was the total standard cost of the materials used during August? (Omit the "$" sign in your response.)
How many yards of material are required at standard per kit? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
What was the materials price variance for August if there were no beginning or ending inventories of materials? (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
What is the standard direct labor rate per hour? (Omit the "$" sign in your response.)
What was the labor rate variance for August? The labor efficiency variance? (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
What was the variable overhead rate variance for August? The variable overhead efficiency variance? (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
Complete the standard cost card for one kit shown at the beginning of the problem. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Explanation / Answer
(1) Total Standard cost of material = $12,800
(2) Yards of material per kit as per standard = 12800/500/5 = $5.12
(3) Material price variance = 15000 - 12000 = $3000F
(4) Standard direct labor rate = $0.85 per DLB
(5)
Labor rate variance = 9000 - 9360 = $360U
Labor efficiency variance = 8500 - 9000 = $500U
(6)
Variable O/H rate variance = 1800 - 1720 =80F
Variable O/H Efficiency variance = 1700 - 1800 = $100U
(7)
Direct Material: 5.12 x $5 per yard = $25.6
Direct labor: 0.85 hours x $20 per hour = $17
Overhead: 0.85 hours x 4 = $3.4
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.