Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system:
"Standard Cost Inputs Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit "T)''Standard Standara Quantity or Price Hours or Rate 2.20 pounds $16.80 per pound 1.00 hours $15.30 per hour 1.00 hours $ 9.50 per hour (1) X (2) $ 36.96 $ 15.30 $ 9.50 $ 61.76 Direct materials Direct labor Variable manufacturing overhead Total Variances Reported Standard Price Quantity or Cost* or Rate Efficiency $628,320 $ 11,426 F $ 33,600 U $260,100 $ 3,600 U $ 15,300 U $161,500 $ 4,000 F $ itu *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. 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 4 5. Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost is applied on the basis of standard direct labor-hours. The budgeted variable manufacturing overhead is $4.80 per direct labor-hour and the budgeted fixed manufacturing overhead is $2,112,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $10.00 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $13.40 per hour. The company planned to operate at a denominator activity level of 240,000 direct labor-hours and to produce 160,000 units of product during the most recent year. Actual activity and costs for the year were as follows: Actual number of units produced Actual direct labor-hours worked Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred 192,000 312,000 $ 873,600 $2,184,000 Required: 1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elements. 2. Prepare a standard cost card for the company's product. 3a. Compute the standard direct labor-hours allowed for the year's production. 3b. Complete the following Manufacturing Overhead T-account for the year. 4. Determine the reason for any underapplied or overapplied overhead for the year by computing the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 3B Reg 4 Complete the following Manufacturing Overhead T-account for the year. Actual costs :...cunkenst........ Manufacturing Overhead 873,600 1,382,400 Applied costs ..........2..184.00n............2.624.40.Aslindensto
