Problem 10-14 Comprehensive Variance Analysis [LO1, LO2, LO3] Vitalite, Inc., pr

Question

Problem 10-14 Comprehensive Variance Analysis [LO1, LO2, LO3] Vitalite, Inc., produces a number of products, including a body-wrap kit. Standard variable costs relating to a single kit are given below: Standard Quantity Standard Price Standard or Hours Cost or Rate S5 per yarod Direct materials Direct labor Variable manufacturing o $6 per direct labor-hour Total standard cost per kit $42 During August, 600 kits were manufactured and sold. Selected information relating to the month's production is given below Variable Manufacturing Overhead $1,800 $1,820 Materials Used Direct Labor $9,000 Total standard cost Actual costs incurred Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance $12,500 S 1,225 U For the month's production. The following additional information is available for August's production of kits Actual direct labor-hours Difference between standard and actual cost per kit produced during August 350 S.12 U Required 1. What was the total standard cost of the materials used during August? (Omit the "$" sign in your response.) 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

Explanation / Answer

SQ /SH SR Total Standard Cost AQ/AH AR Total Actual Cost Standard Cost per Unit Actual Cost Per Unit Direct Materials                   2,880 $5 14400 3125 4 12500                            24.00         20.83 ($14400 / $5) ($24 X 600 Kits) ($42 - $15 - $3) Direct Labor 300 30 9000 350 10952                            15.00         18.25 ($18.25X600 Kits) ($9000 / 600 Kits) Variable MOH                       300 $6 1800 350           5.20 1820                               3.00           3.03 ($1800 / 600 Kits) 42 42.12 Answer 1. Total Standard Cost of Material Used = $14400 Answer 2. Yards of Maerial Used in Standard per Kit = 2880 Yards Answer 3. Material Price Variance = (SR - AR) X AQ Material Price Variance = ($5 -$4) X 3125 Material Price Variance = $3125 (F) Material Quantity Variance = $1225 (U) Material quantity Variance = (SQ - AQ) X SR Therefore, =-1225 = (2880 - AQ) X $5 AQ = 3125 Yards Answer 4. Standard DLR per hr = $30 As per Chegg Guidelines, we can answer only one question at a time having four subparts only. For other questions please ask it again.

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