Question
In: Accounting
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from...
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 | $ | 16.10 | per pound | $ | 38.64 |
| Direct labor | 1.00 | hours | $ | 15.70 | per hour | $ | 15.70 |
| Variable manufacturing overhead | 1.00 | hours | $ | 9.50 | per hour | $ | 9.50 |
| Total standard cost per unit | $ | 63.84 | |||||
| Total | Variances Reported | |||||||
| Standard Cost* |
Price or Rate |
Quantity or Efficiency |
||||||
| Direct materials | $ | 734,160 | $ | 13,804 | F | $ | 32,200 | U |
| Direct labor | $ | 298,300 | $ | 4,000 | U | $ | 15,700 | U |
| Variable manufacturing overhead | $ | 180,500 | $ | 4,500 | 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.
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Though requirement in question not mentioned, calculated few things based on experience
| Part-1 | No of Units Produced | ||||
| Standard Material Cost | 734160 | ||||
| Standard Material Cost per unit | 38.64 | ||||
| No of Units Produced (734160/38.64) | 19000 | ||||
| Part-2 | Let actual requirement for unit is x | ||||
| Direct Material Quantity Variance | (SQ-AQ)*SR | ||||
| -32200 | ((19000*2.4)-(19000*x))*16.1 | ||||
| -32200 | (45600-19000x)*16.1 | ||||
| =-32200/16.1 | (45600-19000x) | ||||
| -2000 | (45600-19000x) | ||||
| 19000x | 45600+2000 | ||||
| 19000x | 47600 | ||||
| x | 2.51 | ||||
| Direct Material Purchased and used | 19000*x | 47,600 | 2,000 | 32,200.00 | |
| Part-3 | Standard Quantity | 19000*2.4 | 45600 | ||
| Direct Material Price Variance | (SR-AR)*SQ | ||||
| 13804 | (16.1-AR)*45600 | ||||
| 13804 | 734160-45600AR | ||||
| 45600AR | 734160-13804 | ||||
| 45600AR | 720356 | ||||
| AR | 15.80 | ||||
| Actual Cost per Pound | 15.80 | ||||
| Part-4 | |||||
| Direct Labor Efficiency Variance | (SH-AH)*SR | ||||
| -15700 | ((19000*1)-(19000*x))*15.7 | ||||
| -15700 | (19000-19000x)*15.7 | ||||
| =-15700/15.7 | (19000-19000x) | ||||
| -1000 | (19000-19000x) | ||||
| 19000x | 19000+1000 | ||||
| 19000x | 20000 | ||||
| x | 1.05 | ||||
| Actual Direct Labor Hours | 19000*x | ||||
| Part-5 | Standard Quantity | 19000*1 | 19000 | ||
| Direct Material Price Variance | (SR-AR)*SQ | ||||
| -4000 | (15.7-AR)*19000 | ||||
| -4000 | 298300-19000AR | ||||
| 19000AR | 298300+4000 | ||||
| 19000AR | 302300 | ||||
| AR | 15.91 | ||||
| Actual Cost per Pound | 15.91 | ||||
ekkarill92 answered 1 year agoRelated Solutions
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from...
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 2.30 pounds $ 16.90 per
pound $ 38.87 Direct labor 1.00 hours $ 15.60 per hour $ 15.60
Variable manufacturing overhead 1.00 hours $ 9.60 per hour $ 9.60
Total standard cost per unit $ 64.07 Total Variances Reported
Standard Cost* Price...
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from...
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
$
16.20
per pound
$
38.88
Direct labor
1.00
hours
$
15.30
per hour
$
15.30
Variable manufacturing overhead
1.00
hours
$
9.30
per hour
$
9.30
Total standard cost per unit
$
63.48
Total
Variances Reported
Standard
Cost*
Price...
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from...
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
2.00
pounds
$
16.70
per pound
$
33.40
Direct labor
1.00
hours
$
15.50
per hour
$
15.50
Variable manufacturing overhead
1.00
hours
$
9.30
per hour
$
9.30
Total standard cost per unit
$
58.20
Total
Variances Reported
Standard
Cost*
Price...
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from...
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
2.20
pounds
$
16.10
per pound
$
35.42
Direct labor
1.00
hours
$
15.10
per hour
$
15.10
Variable manufacturing
overhead
1.00
hours
$
9.20
per hour
$
9.20
Total standard cost per
unit
$
59.72
Total
Variances Reported
Standard
Cost*
Price...
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from...
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
2.10
pounds
$
16.80
per pound
$
35.28
Direct labor
1.00
hours
$
15.80
per hour
$
15.80
Variable manufacturing overhead
1.00
hours
$
9.40
per hour
$
9.40
Total standard cost per unit
$
60.48
Total
Variances Reported
Standard
Cost*
Price...
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from...
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...
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from...
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
2.30
pounds
$
16.30
per pound
$
37.49
Direct labor
1.00
hours
$
15.90
per hour
$
15.90
Variable manufacturing overhead
1.00
hours
$
9.20
per hour
$
9.20
Total standard cost per unit
$
62.59
Total
Variances Reported
Standard
Cost*
Price...
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from...
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
2.00
pounds
$
16.50
per pound
$
33.00
Direct labor
1.00
hours
$
15.70
per hour
$
15.70
Variable manufacturing
overhead
1.00
hours
$
9.30
per hour
$
9.30
Total standard cost per
unit
$
58.00
Total
Variances Reported
Standard
Cost*
Price...
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from...
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
2.20
pounds
$
17.10
per pound
$
37.62
Direct labor
1.00
hours
$
15.90
per hour
$
15.90
Variable manufacturing overhead
1.00
hours
$
9.40
per hour
$
9.40
Total standard cost per unit
$
62.92
Total
Variances Reported
Standard
Cost*
Price...
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from...
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
2.50
pounds
$
16.50
per pound
$
41.25
Direct labor
1.00
hours
$
15.80
per hour
$
15.80
Variable manufacturing overhead
1.00
hours
$
9.20
per hour
$
9.20
Total standard cost per unit
$
66.25
Total
Variances Reported
Standard
Cost*
Price...
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