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?

Answer 1

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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	15.8

6		Actual Variable manufacturing overhead
			Hours	Rate	Cost
		Standard	16000	9.1	145600
		Actual at standard rate	17000	9.1	154700
		add: Price Variance			4300
		Actual Overhead incurred			159000