Vitex, Inc. manufactures a popular consumer product and it has provided the foll

Question

Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: (1) Standard Quantity or Standard Price or Rate Standard Coat Inputs Direct materials Direct labor Variable manufacturing overhead Hours 2.40 pounds $16.50 per pound $39.60 $15.80 1.00 houra 9.40 per hour 9.40 $64.80 1.00 hour $15.80 per hour 45 Total atandard cost per unit Total Variances Reported Standard PriceQuantity or Cost+or Rate Efficiency $752,400 $13,804 $33,000 U Direct materials Direct labor $300,200 4,000 U $15,800 U Variable manufacturing overhead $178,600 4,600 P

Explanation / Answer

Variance Reported Standard Qty Standard Price Standard Cost Total SC Price Qty Direct Material 2.40 16.50 39.60 Direct Material 7,52,400 13,804 -33,000 Direct Labor 1.00 15.80 15.80 Direct Labor 3,00,200 -4,000 -15,800 Variable MOH 1.00 9.40 9.40 Variable MOH 1,78,600 4,600 ? 64.80 12,31,200 Standard Qty Standard Price Standard Cost Direct Material 45,600 16.50 7,52,400 Direct Labor 19,000 15.80 3,00,200 Variable MOH 19,000 9.40 1,78,600 12,31,200 Solutions: WN 1: 1 Number of Units Produced 19000 (1231200/64.80) DM Qty Variance -33,000 2 Pounds of Material Used in Production 43600 WN 1 (Standard Qty-Actual Qty)*Standard Price -33,000 3 Actual Cost Per Pound 16.82 WN 2 (45600-Actual Qty)*16.50 -33000 4 Actual DLH 20,000 WN 3 (45600-Actual Qty) -2000 5 Actual Rate Per DLH 16.00 WN 4 Actual Qty 43600 6 Actual Variable MOH Cost 192600 WN 5 WN 2: DM Rate Variance 13,804 (Standard Rate-Actual Rate)*Actual Qty Used 13,804 (16.50-Actual Rate)*43600 13,804 WN 5: 719400-43600Actual Rate 13,804 VMOH Rate Variance 4,600 43600 Actual Rate 733204 (Standard Rate-Actual Rate)*Actual Hours 4,600 Actual Rate 16.82 (9.40-Actual Rate)*20000 4,600 188000-20000Actual Rate 4,600 WN 3: Actual Rate 9.63 DL Qty Variance -15,800 (Standard Hour-Actual Hour)*Standard Price -15,800 Actual Hours 20,000 (19000-Actual Hour)*15.8 -15,800 Actual Variable MOH Cost 192600 (19000-Actual Hour) -1000 Actual Hours 20000 WN 4: DL Rate Variance -4,000 (Standard Rate-Actual Rate)*Actual Hours -4,000 (15.80-Actual Rate)*20000 -4,000 15.80-Actual Rate -0.20 Actual Rate 16.00

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