Help Save & Exi Chec Vitex, Inc. manufactures a popular consumer product and it

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Help Save & Exi Chec Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost (1) Standard Quantity or Standard Price Standard Inputs Direct labor Variable manufacturing overhead Total standard cost per unit Moars 2.30 pounds 1.00 hours terials $16-60 per pound $15.60 per $38.18 15.60 1.00 hours $9.20 per hour9 20 $62.98 Total Variances Reported Standard Price Quantity or Coat or Rate Effieieney 687,24O $12,586F $33,200 280,800 3,800U $15,600 Direct materials Direct labor Variable manufacturing overhead 165,600 4,300 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 purc 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? 1. Number of units produced C Prev 4 of 4 MacBook Air

Explanation / Answer

1. No of units produced = Total standard cost/standard cost per unit = 687240/38.18 = 18000 units

2. Pounds of direct material purchased and used in production:

Material quantity variance = (standard quantity-actual quantity) standard price

-33200 = (18000*2.3-X) *16.60

-33200 = (41400-x) *16.60

-33200 = 687240-16.60X

16.60X = 687240+33200

X= 720440/16.6

X= 43400

X (actual quantity purchased and used) = 43400 pounds

3. Actual cost per pound:

Material price variance = (standard price-actual price) actual quantity

12586   = (16.60-X) 43400

12586 = 720440-43400X

43400X     = 720440-12586

43400X=707854

X = 707854/43400

X=16.31

X (actual cost per pound) = 16.31

4.) Calculate actual direct labor hours worked:

Direct labor efficiency variance = (standard hours-actual hours) standard rate

-15600 = (18000-X) 15.60

-15600 = 280800-15.60X

15.6X     = 280800+15600

15.6X=296400

X=296400/15.6

X= 19000

x (actual direct labor hours)   = 19000 Hours

5. Actual rate per direct labor hour:

Labor rate variance = (standard rate-actual rate) actual hours

-3800     = (15.60-X) 19000

-3800      = 296400-19000X

19000X      = 296400+3800

19000X=300200

X= 15.8

X (Actual rate per direct labor hour) = 15.8 per hour

6) Actual variable overhead cost:

Variable overhead efficiency variance = (Standard hour-actual hour)* standard rate

= (18000*1-19000)*9.2

Variable overhead efficiency variance = 9200 U

Total variable overhead cost variance = 9200 U+4300 F = 4900 U

Actual variable overhead = standard overhead+ Unfavorable variance

                                    = 165600+4900

Actual variance overhead = 170500

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