Vitalite, Inc., produces a number of products, including a body-wrap kit. Standard variable costs relating to a single kit are given below:

During August, 500 kits were manufactured and sold. Selected information relating to the month's production is given below:

The following additional information is available for August's production of kits:
Actual direct labor-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900
Difference between standard and actual cost per kit produced
during August . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.14 U

Required:
1. What was the total standard cost of the materials used during August?
2. How many yards of material are required at standard per kit?
3. What was the materials price variance for August?
4. What is the standard direct labor rate per hour?
5. What was the labor rate variance for August? The labor efficiency variance?
6. What was the variable overhead spending variance for August? The variable overhead efficiency variance?
7. Complete the standard cost card for one kit shown at the beginning of theproblem.

Transcribed Image Text:

Standard Quantity Standard Price Standard or Hours or Rate $6 per yard $2 per direct Cost Direct materials. Direct labor Variable manufacturing overhead 7 7 $42 labor-hour Total standard cost per kit..... Variable Materials Direct Manufacturing Used Labor Overhead $1,600 $1,620 Total standard cost Actual costs incurred Materials price variance Materials quantity variance $8,000 $10,000 $600 U Labor rate variance Labor efficiency variance. Variable overhead spending variance Variable overhead efficiency variance . For the month's production.