Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system:( 2)Standard(1) StandardQuantity orStandardPriceCost(1) × (2)$34.44$15.70$ 9.40InputsDirect materialsHoursor Rate2.10 pounds$16.40 per pound$15.70 per hour$ 9.40 per hourDirect labor1.00 hoursVariable manufacturing overhead1.00 hours$59.54Total standard cost per unitTotalVariances ReportedPriceQuantity orEfficiency$StandardCost*or Rate$654,360 $ 12,151 F$298,300 $ 4,000 U$ 32,800 U$Direct materialsDirect labor$ 15,700 UVariable manufacturing overhead$178,600 $ 4,400 F*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 purchasedduring 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 produced19,0002.Pounds of direct material purchased and used in production3.Actual cost per pound4.Actual direct labor-hours5.Actual rate per direct labor-hour6.Actual variable manufacturing overhead cost

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Description: Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system:( 2)Standard(1) StandardQuantity orStandardPriceCost(1) × (2)$34.44$15.70$ 9.40InputsDirect materialsHoursor Rate2.10 p

We should know the formula first then we should proceed further. 6. Actual manufacturing overhead…

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How many units were produced last period? How many pounds of direct material were purchased and used in production? What was the actual cost per pound of material? (Round your answer to 2 decimal places.) How many actual direct labor-hours were worked during the period? What was the actual rate paid per direct labor-hour? (Round your answer to 2 decimal places.) How much actual variable manufacturing overhead cost was incurred during the period?

How many units were produced last period? How many pounds of direct material were purchased and used in production? What was the actual cost per pound of material? (Round your answer to 2 decimal places.) How many actual direct labor-hours were worked during the period? What was the actual rate paid per direct labor-hour? (Round your answer to 2 decimal places.) How much actual variable manufacturing overhead cost was incurred during the period?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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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Question

Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system:
( 2)
Standard
(1) Standard
Quantity or
Standard
Price
Cost
(1) × (2)
$34.44
$15.70
$ 9.40
Inputs
Direct materials
Hours
or Rate
2.10 pounds
$16.40 per pound
$15.70 per hour
$ 9.40 per hour
Direct labor
1.00 hours
Variable manufacturing overhead
1.00 hours
$59.54
Total standard cost per unit
Total
Variances Reported
Price
Quantity or
Efficiency
$
Standard
Cost*
or Rate
$654,360 $ 12,151 F
$298,300 $ 4,000 U
$ 32,800 U
$
Direct materials
Direct labor
$ 15,700 U
Variable manufacturing overhead
$178,600 $ 4,400 F
*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?
1.
Number of units produced
19,000
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

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