Varitek

Company began the manufacture of a new paging machine known as Sleek. The company installed a standard costing system to account for manufacturing costs. The standard costs for a unit of Sleek and other information follow:

Data table

The standard costs for a unit of Sleek follow:

Direct materials (3 lb. at $? per lb.)	$12.00
Direct manufacturing labor (? hour at $14 per hour)	7.00
Manufacturing overhead (?% of direct manufacturing labor costs)	1.40
Standard cost per unit	?

The following data were obtained from

Varitek's

records for the month of May:

	Debit	Credit
Revenues		$160,000
Direct materials price variance	$1,100
Direct materials efficiency variance	2,700
Direct manufacturing labor price variance	1,700
Direct manufacturing labor efficiency variance		2,300

Actual production in May was

4,300

units of Sleek, and actual sales in May were

3,200

units. The amount shown for direct materials price variance applies to materials purchased and used during May. There was no beginning inventory of materials on May 1, 2020

Requirements

Compute each of the following items for

Varitek

Company for the month of May. Show your computations by first selecting the formula, then entering the amounts in the formula, and then solving for your answer.

1.	(a) Standard cost per pound of direct materials, (b) Standard hours per unit of direct manufacturing labor, (c) Standard manufacturing overhead cost expressed as a percentage of standard direct manufacturing labor cost, (d) Standard cost per unit (paging machine)
2.	Standard direct manufacturing labor-hours allowed for actual output produced
3.	Actual direct manufacturing labor-hours worked
4.	Actual direct manufacturing labor wage rate
5.	Standard quantity of direct materials allowed (in pounds)
6.	Actual quantity of direct materials purchased and used (in pounds)
7.	Actual direct materials price per pound

Question content area bottom

Part 1

1a. Compute the standard cost per pound of direct materials.

Standard cost of DM per unit

Standard lbs per unit

=

Standard DM cost per lb

Part 2

$12

3

=

$4

Part 3

1b. Compute the

standard

hours per unit of direct manufacturing labor. (Round your answer to the nearest cent.)

Standard cost of DL per unit

Budgeted DL rate per hour

=

Standard direct mfg. labor-hours per unit

Part 4

$7

$14

=

0.5

Part 5

1c. Compute the standard manufacturing overhead cost expressed as a percentage of standard direct manufacturing labor cost.

Standard manufacturing overhead cost expressed as a percentage of standard direct manufacturing labor cost is

20

%.

Part 6

1d. Compute the standard cost per unit (paging machine). (Round your answer to the nearest cent.)

The standard cost per unit of the paging machine is

$20.40

.

Part 7

2. Compute the standard direct manufacturing labor-hours allowed for actual output produced. (Enter rates to two decimal places. Round your final answer to the nearest whole number.)

Actual units produced

Standard DL hours per unit

=

Standard direct manuf. labor-hours allowed for actual output produced

Part 8

4,300

0.50

hours

=

2,150

hours

Part 9

3. Compute the actual direct manufacturing labor-hours worked. (Round your answer to the nearest whole dollar.)

(

Flexible budget for DL

-

Efficiency variance

)

Budgeted DL rate per hour

=

Actual direct mfg. labor-hours worked

Part 10

(

-

)

=

hours

ONLY 3-7 needed of requirements posted past questions for reference if needed