Case 10-17 (Algo) Working Backwards from Variance Data [LO10-1, LO10-2, LO10-3] Vitex, Incorporated manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: Inputs Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Direct materials i Direct labor Variable manufacturing overhead (1) × (2) (1) Standard (2) Standard Price or Standard Coat Quantity or Bours. Rate 2.20 pounds 1.00 hours 1.00 hours $36.30 $15.80 $9.20 $61.30 Total Standard Cost $ 653,400 $ 284,400 $ 165,600 $ 16.50 per pound $ 15.80 per hour $9.20 per hour Variances Price or Rate $ 12,064 F $ 3,800 U $ 4,900 F Reported Quantity or Efficiency $ 35,000 U $ 15,800 U $ 21 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.) Un till matchand and in the dad)
Case 10-17 (Algo) Working Backwards from Variance Data [LO10-1, LO10-2, LO10-3] Vitex, Incorporated manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: Inputs Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Direct materials i Direct labor Variable manufacturing overhead (1) × (2) (1) Standard (2) Standard Price or Standard Coat Quantity or Bours. Rate 2.20 pounds 1.00 hours 1.00 hours $36.30 $15.80 $9.20 $61.30 Total Standard Cost $ 653,400 $ 284,400 $ 165,600 $ 16.50 per pound $ 15.80 per hour $9.20 per hour Variances Price or Rate $ 12,064 F $ 3,800 U $ 4,900 F Reported Quantity or Efficiency $ 35,000 U $ 15,800 U $ 21 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.) Un till matchand and in the dad)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Direct labor
Variable manufacturing overhead
$ 284,400
$ 165,600
www.
$ 3,800 U
$ 4,900 F
+
--.--.
$ 15,800 U
SITU
"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.
1. Number of units produced
2. Pounds of direct material purchased and used in production
3. Actual cost per pound
4. Actual direct labor-hours
5. Actual rate per direct labor-hour
6. Actual variable manufacturing overhead cost
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?
![Case 10-17 (Algo) Working Backwards from Variance Data [LO10-1, LO10-2, LO10-3]
Vitex, Incorporated manufactures a popular consumer product and it has provided the following data excerpts from its standard cost
system:
Inputs
Direct materials
Direct labor
Variable manufacturing overhead
Total standard cost per unit
Direct materials i
Direct labor
Variable manufacturing overhead
(1) Standard (2) Standard Price or Standard Coat
Quantity or Bours.
Rate
2.20 pounds
1.00 hours
1.00 hours
$16.50 per pound
$ 15.80 per hour
$9.20 per hour
(1) × (2)
$36.30
$15.00
$9.20
$ 61.30
Total
Standard
Cost
$ 653,400
$ 284,400
$ 165,600
Variances
Price or Rate
$ 12,064 F
$ 3,800 U
$ 4,900 F
Reported
Quantity or
Efficiency
$ 35,000 U
$ 15,800 U
571 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.)
U till matchand and disa tha madad](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F33700354-bff8-4135-ac1a-bbcaa1215400%2F72b241f9-8ee0-46fc-ae70-285eb537fdea%2F13rrtbk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Case 10-17 (Algo) Working Backwards from Variance Data [LO10-1, LO10-2, LO10-3]
Vitex, Incorporated manufactures a popular consumer product and it has provided the following data excerpts from its standard cost
system:
Inputs
Direct materials
Direct labor
Variable manufacturing overhead
Total standard cost per unit
Direct materials i
Direct labor
Variable manufacturing overhead
(1) Standard (2) Standard Price or Standard Coat
Quantity or Bours.
Rate
2.20 pounds
1.00 hours
1.00 hours
$16.50 per pound
$ 15.80 per hour
$9.20 per hour
(1) × (2)
$36.30
$15.00
$9.20
$ 61.30
Total
Standard
Cost
$ 653,400
$ 284,400
$ 165,600
Variances
Price or Rate
$ 12,064 F
$ 3,800 U
$ 4,900 F
Reported
Quantity or
Efficiency
$ 35,000 U
$ 15,800 U
571 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.)
U till matchand and disa tha madad
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