Case 10-17 (Algo) Working Backwards from Variance Data )LO10-1, LO10-2, LO10-3) 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?Number of units producedPounds of direct material purchased and used in productionActual cost per poundActual direct labor-hours1.2.3.4.5.Actual rate per direct labor-hour6.Actual variable manufacturing overhead cost Case 10-17 (Algo) Working Backwards from Variance Data [LO10-1, LO10-2, LO10-3]Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system:(2)(1) StandardQuantity orStandardPriceStandardCostor Rate$16.60 per pound$15.50 per hour$ 9.50 per hour(1) x (2)$ 38.18$ 15.50$ 9.50$ 63.18InputsDirect materialsHours2.30 poundsDirect labor1.00 hoursVariable manufacturing overhead1.00 hoursTotal standard cost per unitVariances ReportedQuantity orEfficiency$ 33,200 U$ 15,500 UTotalStandardPriceor Rate$610,880 $ 1,252 F$248,000 $ 3,400 UCost*Direct materialsDirect laborVariable manufacturing overhead$152,000 $ 4,900 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.

Variance:- It means when there is a deviation between actual output and standard output. Companies…

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? Number of units produced Pounds of direct material purchased and used in production Actual cost per pound 1. 2. 3. 4. Actual direct labor-hours

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? Number of units produced Pounds of direct material purchased and used in production Actual cost per pound 1. 2. 3. 4. Actual direct labor-hours

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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Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell B30 enter the formula "= B20". Notes: In the text, variances are always displayed as positive numbers. To accomplish this, you can use the ABS() function in Excel. For example, the formula in cell C31 would be "=ABS(E31-B31)". Cells D31 through D39 and G31 through G39 already contain formulas to compute and display whether variances are Favorable or Unfavorable. Do not enter data or formulas into those cells-if you do, you will overwrite these formulas. After entering formulas in all of the cells that contained question marks, verify that the amounts match the numbers in the example in the text. Required: 1. Check your worksheet by changing the revenue in cell D4 to $16.00; the cost of ingredients in cell D5 to $6.50; and the wages and salaries in cell B6 to $10,000. The activity variance for net operating income should now be $850 U and the spending variance for total…
TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the following standards for the prime costs of one unit of product. Direct Materials Direct Labor Standard Quantity 8 pounds 0.25 hour Standard Price $ 3.40 per pound $ 11.20 per hour Standard Cost $ 27.20 2.80 $ 30.00 During November, TaskMaster purchased 168,000 pounds of direct materials at a total cost of $588,000. The total factory wages for November were $58,000, 90% of which were for direct labor. TaskMaster manufactured 19,800 units of product during November using 148,500 pounds of direct materials and 5,160 direct labor-hours. Is the direct labor rate variance favorable or unfavorable?
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