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 | |||||
Direct materials | 2 | pounds | $ | 3.00 | per pound | ||
Direct labor | 1.00 | hours | $ | 15 | per hour | ||
Total | Variances Reported | |||||||
Standard Cost* | Price or Rate | Quantity or Efficiency | ||||||
Direct materials | $ | 390,000 | $ | 27,600 | U | $ | 13,500 | U |
Direct labor | $ | ? | $ | 26,800 | F | $ | 3,750 | F |
The company's manufacturing overhead cost is applied to production on the basis of direct labor-hours. The company purchased $441,600 of direct materials and at the end 3,500 pounds of direct materials are left in the inventory. Assuming zero beginning balance for direct materials.
Required:
1. How many units were produced last period?
2. How many pounds of direct material were purchased.
3. What was the actual cost per pound of material? (Round your answer to 2 decimal places.)
4. How many actual direct labor-hours were worked during the period?
5. How much actual direct labor cost was incurred during the period?
6. What was the actual rate paid per direct labor-hour? (Round your answer to 2 decimal places.)
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