ttps://newconnect html Vitex, Inc. manufactures a popular consumer product and i
ID: 2559163 • Letter: T
Question
ttps://newconnect html Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: 2) Standard Price or Rate (1) standard Quantity or Direct naterials Direet labor Variable manufacturing overhead Total standard eost per unit 2.20 pounds $16.30 per pound 1.00 hour 15.40 per hour 1.00 hours 9.50 per hour 950 36.30 $15.40 Total Variances Reported Standard Price Quantity Direct materi Direct labor Coat or Rate Effieiency $617,100 11,426P 33.000 U 261,800 3.600U 15,400 u Variable manufacturing overhead $161,500 4,400 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? F2 FSExplanation / Answer
1)Units produced = Standard cost of direct material /standard direct material cost per unit
= 617100/36.3
= 17000 Units
2)Material quantity variance =SR[AQ-SQ]
33000 = 16.5 [ AQ- (17000* 2.20)]
33200/16.60 = [AQ- 37400]
2000+37400 =AQ
Actual quantity purchased and used : 39400
3)Material rate variance = AQ[AR-SR]
-11426=39400[AR-16.50]
-11426/39400 = AR- 16.50
-.29+16.50 = AR
Actual cost per pound = $ 16.21 per pound
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