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

Question

2 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 50 points Standard Price or Rate Cost Inputs Direct materials Direct labor Variable manufacturing overhead Hours $16.20 per pound $15.40 per hour 1.00 hours 9.30 per hour$9.30 2.40 pounds 1.00 hours $ 38.88 $15.40 eBook $63.58 Total standard cost per unit Print References Variances Reporte Total Standard Price or Rate $660,960 12,412 F 32,400 U Quantity or Efficiency Cost* Direct materials Direct labor 15,400 U 261,800 3,600 u $158,100 4,100 F $ Variable manufacturing overhead Applied to Work in Process during the period The company's manufacturing overhead cost is applied to production on the basis of direct labor-hours. All of the materials purchas during the period were used in production. Work in process inventories are insignificant and can be ignored Required 1. How many units were produced last period? 2. How many pounds of direct material were purchased and used in production? 3. What was the actual cost per pound of material? (Round your answer to 2 decimal places.) 4. How many actual direct labor-hours were worked during the period? 5. What was the actual rate paid per direct labor-hour? (Round your answer to 2 decimal places.) O Type here to search CL

Explanation / Answer

Req 1: Std cost of material: $ 660,960 Std materiala cost per unit" $ 38.88 Actual output: $660,960 /38.88 = 17,000 units Req 2: Std quantity allowed for actualoutput (17000*2.40): 40800 pounds Material quantity variance= 32400 U Material Quantity Variance= Std pricec(Std quantity-Actual quantity) 32400 U = 16.20 (40800- Actual quantity) Actual quantity used: 42800 pounds Req 3 Material Price variannce: Actual quantity (Std pricec-Actual pricec) 12412 F = 42800 (16.20 - Actual price) Actual price per pound: 15.91 per pound Actual cost: 42800 pounds @ 15.91 = $ 680,948 Req 4: Std labour hourrs for actual output:(17000*1): 17000 hours Labour efficiency variance= Std rate per hour (Std hours-Actual hours) 15400 U = 15.40 (17000- Actual hours) Actual hours: 18000 hours Req 5: labour rate variance= Actual hours (Std rate per hour-Actual rate per hour) 3600 U = 18000 hourrs (15.40- Actual rate) Actual rate per hour = 15.60 per hour

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