Problem 11-14 Comprehensive Variance Analysis [LO11-1, LO11-2, LO11-3]

Vitalite, Inc., produces a number of products, including a body-wrap kit. Standard variable costs relating to a single kit are given below:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost
Direct materials	?	$8.00 per yard	$ ?
Direct labor	?	?	?
Variable manufacturing overhead	?	$2 per direct labor-hour	?
Total standard cost per kit			$43.50

During August, 610 kits were manufactured and sold. Selected information relating to the months production is given below:

	Materials Used	Direct Labor	Variable Manufacturing Overhead
Total standard cost*	?	$10,065	$1,830
Actual costs incurred	$14,000	?	$1,905
Materials price variance	?
Materials quantity variance	$ 1,360 U
Labor rate variance		?
Labor efficiency variance		?
Variable overhead rate variance			?
Variable overhead efficiency variance			?

*For the month's production.

The following additional information is available for Augusts production of kits:

Actual direct labor-hours

960

Difference between standard and actual cost per kit produced during August

$0.20

U

1.

What was the total standard cost of the materials used during August?

Total standard cost for units produced during August:$26,535Less standard cost of labor and overhead:Direct labor10,065Variable manufacturing overheadStandard cost of materials used during August$16,470

2. How many yards of material are required at standard per kit?

Standard cost of materials used during August

Number of units produced 610

Standard materials cost per kit

Standard materials cost per yard $8

Number of yards per kit

What was the materials price variance for August if there were no beginning or ending inventories of materials?

aterials price variance

Materials quantity variance 1,360U

Spending variance

4, What is teh standard direct labor rate per hour?

Standard manufacturing variable overhead cost for August $1,830

Standard manufacturing variable overhead rate per direct labor-hour 2

Standard direct labor-hours for the month 915

Standard labor cost for the month

Standard direct labor rate per hour

5. What was the labor rate variance for August? The labor efficiency variance?

Labor rate variance

Labor efficiency variance

6.

What was the variable overhead rate variance for August? The variable overhead efficiency variance? Variable overhead rate variance Variable overhead efficiency variance 7. Standard Quantityor Hours/Standard Price or Rate/Standard Cost Direct materials yards $8per yard Direct labor hours per hour Variable manufacturing overhead hours $2per direct labor-hou Total standard cost per kit$43.50 Complete the standard cost card for one kit shown at the beginning of the problem