Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: Inputs Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit (1) Standard Quantity or Hours 2.40 pounds 1.00 hours 1.00 hours (2) Standard Price or Rate $17.00 per pound $15.40 per hour $9.30 per hour Standard Coat (1) 12) $40.80 $15.40 $ 9.30 $65.50 Total Variances Reported Standard Price Quantity or Coat Or Rate Efticiency Direct materials $693,600 $ 12,412 $ 34,000 U Direct labor $261,800 $ 3,600 U $ 15,400 Variable manufacturing overhead $158, 100 $ 4.400 Y $ 20 *Applied to Work in Process during the period The company's 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? (Round your answer to 2 decimal places.) 4. How many actual direct labor-hours were worked during the period? 5. What was the actual rate paid per direct labor-hour? (Round your answer to 2 decimal places.) 6. How much actual variable manufacturing overhead cost was incurred during the period? 1. 2 3 4. 5. 6 Number of units produced Pounds of direct material purchased and used in production Actual cost per pound Actual direct labor hours Actual rate per direct labor hour Actual variable manufacturing overhead cost John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital's lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospital's lab for the past month. The following information is available: a. Two types of tests are performed in the lab-blood tests and smears. During the past month, 200 blood tests and 2,000 smears were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 10,000 plates at a cost of $32,900. 1,000 of these plates were unused at the end of the month; no plates were on hand at the beginning of the month. c. During the past month, 1000 hours of labor time were recorded in the lab at a cost of $10,300. d. The lab's variable overhead cost last month totaled $6,600. Valley View Hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital labs Plates: Three plates are required per lab test. These plates cost $3.50 each and are disposed of after the test is completed. Labor. Each blood test should require 0.6 hours to complete, and each smear should require 0.30 hours to complete. The average cost of this lab time is $11.00 per hour, Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $6.10 per hour. Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month. 2. For labor cost in the lab: 2. Compute a labor rate variance and a labor efficiency variance. b. In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants. In an effort to reduce costs, Valley View Hospital employs only one fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-5. Is there any relation between the variable overhead efficiency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Req 3A Reg 3B Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month. (Indicate the effect of each variance by selecting F for favorable, "u" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.) Materials price variance Materials quantity variance Req2A > Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity verlance for the plates used fast month. 2. For labor cost in the lab; a. Compute a labor rate variance and a labor efficiency variance. b. In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants. In an effort to reduce costs, Valley View Hospital employs only one fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-6. Is there any relation between the variable overhend efficiency variance and the Inbor efficiency variance? Complete this question by entering your answers in the tabs below. Mea 1 Reg 2 Res 20 Regs Re JB For labor cost in the lob, Compute a labor rate variance and a labor emciency variance. (Indicate the effect of each variance ty selecting for favorable, "U" for unte d'Nonn" for no effect ( mere variance). Input all amounts as positive values.) Laborrate variance Laboracicy variance month. Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last 2. For labor cost in the lab: a. Compute a labor rate variance and a labor efficiency variance. b. In most hospitals, one-half of the workers in the tab are senior technicians and one-half are assistants. In an effort to reduce costs. Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-5. Is there any relation between the variable overhead efficiency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. Reg 1 Red 2A Reg 20 Rea 3A Reg 38 In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants. In an effort to reduce costs, Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? Yes NO Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month 2. For labor cost in the lab: a. Computea labor rate variance and a labor efficiency variance, b. In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants in an effort to reduce costs, Valley View Hospital employs only one-fourth senior technicians and three-fourths assistents. Would you recommend that this policy be continued? 3- Compute the variable overhead rate and efficiency variances, 3-b, is there any relation between the variable overhead efficiency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. Rea 1 Red 2A Reg 20 Reg 3 A 38 Is there any relation between the variable overhead efficiency variance and the labor endency variance Yes RSA Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: Inputs Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit (1) Standard Quantity or Hours 2.40 pounds 1.00 hours 1.00 hours (2) Standard Price or Rate $17.00 per pound $15.40 per hour $9.30 per hour Standard Coat (1) 12) $40.80 $15.40 $ 9.30 $65.50 Total Variances Reported Standard Price Quantity or Coat Or Rate Efticiency Direct materials $693,600 $ 12,412 $ 34,000 U Direct labor $261,800 $ 3,600 U $ 15,400 Variable manufacturing overhead $158, 100 $ 4.400 Y $ 20 *Applied to Work in Process during the period The company's 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? (Round your answer to 2 decimal places.) 4. How many actual direct labor-hours were worked during the period? 5. What was the actual rate paid per direct labor-hour? (Round your answer to 2 decimal places.) 6. How much actual variable manufacturing overhead cost was incurred during the period? 1. 2 3 4. 5. 6 Number of units produced Pounds of direct material purchased and used in production Actual cost per pound Actual direct labor hours Actual rate per direct labor hour Actual variable manufacturing overhead cost John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital's lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospital's lab for the past month. The following information is available: a. Two types of tests are performed in the lab-blood tests and smears. During the past month, 200 blood tests and 2,000 smears were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 10,000 plates at a cost of $32,900. 1,000 of these plates were unused at the end of the month; no plates were on hand at the beginning of the month. c. During the past month, 1000 hours of labor time were recorded in the lab at a cost of $10,300. d. The lab's variable overhead cost last month totaled $6,600. Valley View Hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital labs Plates: Three plates are required per lab test. These plates cost $3.50 each and are disposed of after the test is completed. Labor. Each blood test should require 0.6 hours to complete, and each smear should require 0.30 hours to complete. The average cost of this lab time is $11.00 per hour, Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $6.10 per hour. Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month. 2. For labor cost in the lab: 2. Compute a labor rate variance and a labor efficiency variance. b. In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants. In an effort to reduce costs, Valley View Hospital employs only one fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-5. Is there any relation between the variable overhead efficiency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Req 3A Reg 3B Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month. (Indicate the effect of each variance by selecting F for favorable, "u" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.) Materials price variance Materials quantity variance Req2A > Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity verlance for the plates used fast month. 2. For labor cost in the lab; a. Compute a labor rate variance and a labor efficiency variance. b. In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants. In an effort to reduce costs, Valley View Hospital employs only one fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-6. Is there any relation between the variable overhend efficiency variance and the Inbor efficiency variance? Complete this question by entering your answers in the tabs below. Mea 1 Reg 2 Res 20 Regs Re JB For labor cost in the lob, Compute a labor rate variance and a labor emciency variance. (Indicate the effect of each variance ty selecting for favorable, "U" for unte d'Nonn" for no effect ( mere variance). Input all amounts as positive values.) Laborrate variance Laboracicy variance month. Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last 2. For labor cost in the lab: a. Compute a labor rate variance and a labor efficiency variance. b. In most hospitals, one-half of the workers in the tab are senior technicians and one-half are assistants. In an effort to reduce costs. Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-5. Is there any relation between the variable overhead efficiency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. Reg 1 Red 2A Reg 20 Rea 3A Reg 38 In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants. In an effort to reduce costs, Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? Yes NO Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month 2. For labor cost in the lab: a. Computea labor rate variance and a labor efficiency variance, b. In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants in an effort to reduce costs, Valley View Hospital employs only one-fourth senior technicians and three-fourths assistents. Would you recommend that this policy be continued? 3- Compute the variable overhead rate and efficiency variances, 3-b, is there any relation between the variable overhead efficiency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. Rea 1 Red 2A Reg 20 Reg 3 A 38 Is there any relation between the variable overhead efficiency variance and the labor endency variance Yes RSA