Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

  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?

  4. How many actual direct labor-hours were worked during the period?

  5. What was the actual rate paid per direct labor-hour?

  6. How much actual variable manufacturing overhead cost was incurred during the period?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Marketing Audit Guide What It Is Why Your Business Needs One And How To Do It

Authors: Susan G Tyson

1st Edition

B0C12D3DD6, 979-8388994868

More Books

Students also viewed these Accounting questions