Question
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: Inputs (1) Standard Quantity or
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system:
Inputs | (1) Standard Quantity or Hours | (2) Standard Price or Rate | Standard Cost (1) (2) |
Direct materials | 6 pounds | $3 per pound | $ 18.00 |
Direct labor | 0.8 hours | $15 per hour | 12.00 |
Variable manufacturing overhead | 0.8 hours | $3 per hour | 2.40 |
Total standard cost per unit | $32.40 | ||
Total Standard Cost* | Variances Reported | ||
Price or Rate | Quantity or Efficiency | ||
Direct materials | $405,000 | $6,900 F | $9,000 U |
Direct labor | $ 270,000 | $14,550 U | $21,000 U |
Variable manufacturing overhead | $54,000 | $1,300 F | $? U |
*Applied to Work in Process during the period. |
The companys manufacturing overhead cost is applied to production on the basis of 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:
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How many units were produced last period?
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How many pounds of direct material were purchased and used in production?
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What was the actual cost per pound of material?
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How many actual direct labor-hours were worked during the period?
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What was the actual rate paid per direct labor-hour?
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How much actual variable manufacturing overhead cost was incurred during the period?
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