Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have recently accepted a position with Vitex, Inc, the manufacturer of a popular consumer product. During your first week on the job, the vice

image text in transcribed

image text in transcribed

image text in transcribed

You have recently accepted a position with Vitex, Inc, the manufacturer of a popular consumer product. During your first week on the job, the vice president has been favorably impressed with your work. She has been so impressed, in fact, that yesterday she called you into her office and asked you to attend the executive commitee meeting this morning for the purpose of leading a discussion on the varlances reported for last period. Anxcious to favorably impress the executive committee, you took the variances and supporting data home last night to study On your way to work this morming, the papers were laying on the seat of your new, red convertible. As you were crossing a bridge on the highway, a sudden gust of wind caught the papers and blew them over the edge of the bridge and into the stream below. You managed to retrieve only one page, which contains the following information Standard Cost Card Direct materials, 2.50 pounds at $17 00 per pound Direct labor, 1.00 direct labor-hours at $15.60 per drect labor hour Variable manufacturing overhead, 1,00 direct labor-hours at 59.60 per direct labor-hour s 42 50 S 15.60 s 9.60 Variances Reported Price Quantity or Efficiency Total Standard Cost or Rate S 13,630F Direct materials Direct labor Variable manufacturing S 765,000 $280,800 172,800 S 34,000 U $ 3.800US 15,600 U s4,300 FS 21u Applied to Work in Process during the period. Entry obliterated You recall that manufacturing overhead cost is applied to production on the basis of direct labor-hours and that all of the materials purchased during the period were used in production. Work in process inventories are insignificant and can be ignored It is now 8:30 a m. The executive committee meeting starts in just one hour, you realize that to avoid looking like a bungling fool you must somehow generate the necessary "backup data for the variances before the meeting begins. Without backup data it will be impossible to lead the discussion or answer any questions Required: How many units were produced last period? Number of units produced How many pounds of direct material were purchased and used in production? Pounds of arect material were purchased and used in grcection What was the actual cost per pound of material? (Round your answer to 2 decimal places.) : Actual cost per pound How many actual direct labor-hours were worked during the period? Actual direct labor-hours What was the actual rate paid per direct labor-hour? (Round your answer to 2 decimal places.) Actual rate per direct labor-hour How much actual variable manufacturing overhead cost was incurred during the period? ual variable manufactuning overhead cost

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

Data And Analytics In Accounting An Integrated Approach

Authors: Guido Geerts, Ann C. Dzuranin, Margarita Lenk

1st Edition

1119722993, 978-1119722991

More Books

Students also viewed these Accounting questions