Vitex, Incorporated, manufactures a popular consumer product and it provided the following data from its standard cost system: (1) Standard Quantity or Hours (2) Standard Price or Rate Standard Cost $ 3 per pound $ 15 per hour (1) x (2) $18.00 $ 12.00 $2.40 $ 32.40 $ 3 per hour Inputs Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Total 6 pounds 0.8 hours 0.8 hours Standard Cost* $ 405,000 $ 270,000 $ 54,000 Variances Price or Rate $ 6,900 F $ 14,550 U $ 1,300 F 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 Reported Quantity or Efficiency $ 9,000 U $ 21,000 U $ ?U Direct materials Direct labor Variable manufacturing overhead *Applied to Work in Process during the period. The company's manufacturing overhead cost is applied to production based on 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? Note: 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? Note: Round your answer to 2 decimal places. 6. How much actual variable manufacturing overhead cost was incurred during the period?
Vitex, Incorporated, manufactures a popular consumer product and it provided the following data from its standard cost system: (1) Standard Quantity or Hours (2) Standard Price or Rate Standard Cost $ 3 per pound $ 15 per hour (1) x (2) $18.00 $ 12.00 $2.40 $ 32.40 $ 3 per hour Inputs Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Total 6 pounds 0.8 hours 0.8 hours Standard Cost* $ 405,000 $ 270,000 $ 54,000 Variances Price or Rate $ 6,900 F $ 14,550 U $ 1,300 F 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 Reported Quantity or Efficiency $ 9,000 U $ 21,000 U $ ?U Direct materials Direct labor Variable manufacturing overhead *Applied to Work in Process during the period. The company's manufacturing overhead cost is applied to production based on 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? Note: 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? Note: Round your answer to 2 decimal places. 6. How much actual variable manufacturing overhead cost was incurred during the period?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Vitex, Incorporated, manufactures a popular consumer product and it provided the following data from its standard cost system:
Standard Cost
(1) Standard
Quantity or Hours
(2) Standard Price or
Rate
$ 3 per pound
$ 15 per hour
(1) x (2)
$ 18.00
$12.00
$2.40
$ 3 per hour
$ 32.40
Inputs
Direct materials
Direct labor
Variable manufacturing overhead
Total standard cost per unit
Total
6 pounds
0.8 hours
0.8 hours
Standard Cost*
$ 405,000
$ 270,000
$ 54,000
Variances Reported
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
Price or Rate
$ 6,900 F
$ 14,550 U
$ 1,300 F
Quantity or
Efficiency
$ 9,000 U
$ 21,000 U
$ ?U
Direct materials
Direct labor
Variable manufacturing overhead
*Applied to Work in Process during the period.
The company's manufacturing overhead cost is applied to production based on 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?
Note: 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?
Note: Round your answer to 2 decimal places.
6. How much actual variable manufacturing overhead cost was incurred during the period?
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Step 1: Introduce to direct material variance
VIEWStep 2: Working for number of unit produced and pounds of direct material purchased and used
VIEWStep 3: Working for actual cost per pound
VIEWStep 4: Working for actual direct labor hours and actual labor rate
VIEWStep 5: Working for actual variable overhead cost incurred
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