Vitex, Inc. manufactures a popular consumer product and it has provided the foll
ID: 2552790 • Letter: V
Question
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: Inputs (1) Standard Quantity or Hours (2) Standard Price or Rate Standard Cost (1) × (2) Direct materials 2.40 pounds $ 17.10 per pound $ 41.04 Direct labor 1.00 hours $ 16.00 per hour $ 16.00 Variable manufacturing overhead 1.00 hours $ 9.10 per hour $ 9.10 Total standard cost per unit $ 66.14 Total Variances Reported Standard Cost* Price or Rate Quantity or Efficiency Direct materials $ 656,640 $ 11,716 F $ 34,200 U Direct labor $ 256,000 $ 3,400 U $ 16,000 U Variable manufacturing overhead $ 145,600 $ 4,300 F $ ?† U *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 purchased 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.) 6. How much actual variable manufacturing overhead cost was incurred during the period?
Explanation / Answer
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F=Positive, U=Negative SQ SP Standard Cost Total Standard Cost Rate Variance Quantity Varaince Material 2.4 17.1 41.04 656640 11716 -34200 Labour 1 16 16 256000 3400 -16000 Variable Overhead 1 9.1 9.1 145600 4300 66.14 1058240 1 Unit produced last period Standard Cost of Material or Labor or VOH/Standard cost per unit 656640/41.04 16000 2 Pounds of Direct Material Used: Standard Material Used SP Standard Cost Standard Cost 16000*2.4 38400 17.1 656640 Quantity Variance Unfavorable 34200 Standard cost at actual units 690840 Actual Material Used Standard cost on actual unit/Standard price 690840/17.1 40400 3 Actual cost per pound ofmaterial Standard Cost on Actual Quantity 690840 Price Variance - Favorable 11716 Actual Cost A 679124 Actual Quantity B 40400 Actual cost per pound ofmaterial A/B 16.81 4 Actual Labor hour worked Standard Material Used SP Standard Cost Standard Cost 16000*1 16000 16 256000 Quantity Variance Unfavorable 16000 Standard cost at actual units 272000 Actual Hours worked Standard cost on actual unit/Standard price 272000/16 17000 5 Actual Cost per hour Standard Cost on Actual Quantity 272000 Rate Variance - Favorable 3400 Actual Cost A 268600 Actual Hours B 17000 Actual Cost per hour A/B 15.8Related Questions
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