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Vitex, Incorporated, manufactures a popular consumer product and it provided the following data from its standard cost system: Inputs (1) Standard Quantity or Hours (2)
Vitex, Incorporated, manufactures a popular consumer product and it provided the following data from its standard cost system:
Inputs | (1) Standard Quantity or Hours | (2) Standard Price or Rate | Standard Cost (1) (2) | ||
Direct materials | 2.50 | pounds | $ 16.90 | per pound | $ 42.25 |
Direct labor | 1.00 | hours | $ 16.00 | per hour | $ 16.00 |
Variable manufacturing overhead | 1.00 | hours | $ 9.20 | per hour | $ 9.20 |
Total standard cost per unit | $ 67.45 |
Total | Variances Reported | ||||
Standard Cost* | Price or Rate | Quantity or Efficiency | |||
Direct materials | $ 718,250 | $ 12,905 | F | $ 33,800 | U |
Direct labor | $ 272,000 | $ 3,600 | U | $ 16,000 | U |
Variable manufacturing overhead | $ 156,400 | $ 4,700 | F | $ ? question mark
| U |
*Applied to Work in Process during the period.
The company's manufacturing overhead cost is applied to production based on 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:
- How many units were produced last period?
- How many pounds of direct material were purchased and used in production?
- What was the actual cost per pound of material?
- How many actual direct labor-hours were worked during the period?
- What was the actual rate paid per direct labor-hour?
- How much actual variable manufacturing overhead cost was incurred during the period?
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