Vitalite Inc produces a number of products, including a body wrap kit. Standard
ID: 2650945 • Letter: V
Question
Vitalite Inc produces a number of products, including a body wrap kit. Standard costs relating to a single kit are as follows. (PLEASE SHOW WORK SO I CAN LEARN HOW YOU GOT THE ANSWER! THANK YOU IN ADVANCE!!)
During August, 600 kits were manufactured and sold. Selected information relating to the months production is given below:
*For the month's production
The following additional information is available for August's production of kits:
Actual direct labor hours 600
Difference btwn standard and actual cost per kit during August $0.19 U
Required:
1. What is the total standard cost for the materials used during August?
Standard Cost $_______________
2. How many yards of material are required at standard per kit? (Do not round intermediate calculations. Round your final answer to 2 decimal places)
Number of Yards ____________yards per kit
3. What was the materials price variance for August if there were no beginning or no ending inventories of materials? (Input the amount as positive value. Do not round your intermediate calculations, do not leave blank- be certain to enter "0" wherever required. Indicate the effect of variance by selecting "F" for favorable, "U" for unfavorable, and "none" for no effect (ie.,zero variance.)
Material Price Variance $________________
4. What is the standard direct labor rate per hour?
Standard direct labor rate $________________
5. What was the labor effciency variance for August? The labor rate variance? (Input the amount as positive value. Do not round your intermediate calculations, do not leave blank- be certain to enter "0" wherever required. Indicate the effect of variance by selecting "F" for favorable, "U" for unfavorable, and "none" for no effect (ie.,zero variance.)
Labor efficiency Variance $__________________ U or F?
Labor rate variance $__________________ U or F?
6. What was the variable overhead efficiency variance for August? The variable overhead rate variance?(Input the amount as positive value. Do not round your intermediate calculations, do not leave blank- be certain to enter "0" wherever required. Indicate the effect of variance by selecting "F" for favorable, "U" for unfavorable, and "none" for no effect (ie.,zero variance.)
Variable overhead efficiency variance $_______________ U or F?
Variable overhead rate variance $________________ U or F?
7. Complete the standard cost card for one kit shown at the beginning of the problem. (Round your answers to 2 decimal places.)
Standard QUantity or Hours Standard Price or Rate Standard Cost Direct Materials ? $8 per yard $? Direct Labor ? ? ? Variable Manufacturing overhead ? $4 per direct labor hour ? Total Standard cost per kit $49Explanation / Answer
1. Calculation of Total Standard Cost for the Material:
We know that the Total Standard cost of Production per Unit = $49
For 600 Units: 49 x 600 = $29,400
Total Standard cost of Material = Total Standard Cost - Total Standard Labor Cost - Total Standard Variable Manufacturing O/H
Total Standard cost of Material = 29,400 - 7,000 - 2,000 = $20,400
2. Standard Material required per Kit: Total Standard Cost of Material / Standard Price per Yard
Standard Material required per Kit: 20,400 / 8 = 2,550 Yards
Number of Yards per Kit = 2,550 / 600 = 4.25 Yard per Kit
3. Calculation of Material Price Variance:
Given, Material Quantity Variance = 400 Unfavorable
MQV = (Standard Quantity - Actual Quantity) x Standard Price
400 = (2,550 - X) x 8
8X = 20,400 - 400
X = 20,000 / 8
X = 2,500
So, Actual Quantity is 2,500 Yard
MPV = (SP x AQ) - (AP x AQ)
MPV = (8 x 2,500) - 13,000
MPV = 7,000 F
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.