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	$	16.80	per pound	$	40.32
Direct labor	1.00	hours	$	15.20	per hour	$	15.20
Variable manufacturing overhead	1.00	hours	$	9.20	per hour	$	9.20
Total standard cost per unit						$	64.72

	Total		Variances Reported
	Standard Cost*		Price or Rate			Quantity or Efficiency
Direct materials	$	766,080	$	13,804	F	$	33,600	U
Direct labor	$	288,800	$	4,000	U	$	15,200	U
Variable manufacturing overhead	$	174,800	$	4,800	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?

Answer 1

Req 1.
Total Material Std cost applied		7,66,080
Divide: Std material cost per unit	40.32
Actual output produced		19000
Req 2.
Material Qty variance:		33600	U
Std qty allowed (19000*2.4):		45600
Std price:				16.8
Material qty variance = Std price (Std qty allowed- Actual purchased and used)
33600 U = 16.8 (45600 - Actual qty)
Actual qty purchased and used = 47600 Pounds
Req 3.
Material Price variance:		13804	F
Material price variance = Actual qty purchased (Std price - Actual price)
13804 F = 47600 (16.80 - Actual price)
Actual price per pound: $16.51 per pound
req 4.
Labour efficiency variance		15200	U
Std hours allowed (19000*1)		19000
Std rate per hour			15.2
Labour efficiency variance = Std rate (Std hours - Actual hours)
15200 U = 15.20 (19000- Actual hours worked)
Actual hours worked = 20,000 hours
Req 5.
Labour rate variance:		4000	U
Labour rate variance = Actual hours (Std rate - Actual rate)
4000 U = 20000 (15.20 - Actual rate)
Actual rate per hour: $ 15.40 per hour
Req 6.
Variable Oh rate variance:		4800	F
Std oh rate			9.2
Std hours allowed			19000
Actual hours worked			20,000
Variable Oh rate variance= Actual hours worked (Std oh rate -Actual oh rate)
4800 F = 20000 (9.20 - Actual oh rate)
Actual Oh rate = $ 8.96 per hour
Actual variable Oh cost incurred:
Actual Hours worked			20000
Multiply: Actual Oh rate per hour	8.96
Actual variable Oh cost incurred:	179200