Vitex, Inc. manufactures a popular consumer product and it has provided the foll
ID: 2556889 • Letter: V
Question
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system:
*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?
Inputs (1) Standard Quantity or Hours (2)Standard
Price
or Rate Standard
Cost
(1) × (2) Direct materials 2.00 pounds $ 16.20 per pound $ 32.40 Direct labor 1.00 hours $ 15.80 per hour $ 15.80 Variable manufacturing overhead 1.00 hours $ 9.50 per hour $ 9.50 Total standard cost per unit $ 57.70
Explanation / Answer
1. Standard Cost of Material=$583200 Unit Produced ($583200/32.40)= 18000 Unit Total 18000 unit Produced laste year 2. Material Quantity Variance= (SQ-AQ)*SP (2 *18000-AQ)$16.20= -32400 (36000 - AQ) $16.20 =-32400 36000-AQ=-2000 AQ=38000 Pounds 38000 Pound of direct Material were purchased and Procured 3. MPV= (SP-AP)*AQ ($16.20-AP)*38000=11020 $16.20-AP=0.29 AP=$15.91 Actual Cost /Pound will be $15.91 4. LEV=(SH allowed for Actual production-AH)*SR -15800=(1*18000-AH)$15.80 -1000=18000-AH AH=19000 Actual Labour Hour will be 19000 Hours. 5. LRV=(SR-AR)*AH Worked -$3800=($15.80-AR)19000 -$0.2=$15.80-AR AR=$16 Actual Rate paid per direct labour Hour was $16/Hour 6. VOHRV=(SR-AR)* AH Worked 4600=($9.50-AR)*19000 0.242=9.50-AR AR=$9.258 Actual Variable Overheadcost was $9.258
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.