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

Required:

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

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

3	What was the materials price variance for August if there were no beginning or ending inventories of materials? (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

4.

What is the standard direct labor rate per hour?

5.	What was the labor rate variance for August? The labor efficiency variance? (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance))

6.	What was the variable overhead rate variance for August? The variable overhead efficiency variance? (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance))

7.	Complete the standard cost card for one kit shown at the beginning of the problem. (Round your answers to 2 decimal places.)