Question

# Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from...

Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system:

 Inputs (1) Standard Quantity or Hours (2) Standard Price or Rate Standard Cost (1) × (2) Direct materials 2.20 pounds \$ 16.60 per pound \$ 36.52 Direct labor 1.00 hours \$ 15.10 per hour \$ 15.10 Variable manufacturing overhead 1.00 hours \$ 9.60 per hour \$ 9.60 Total standard cost per unit \$ 61.22
 Total Variances Reported Standard Cost* Price or Rate Quantity or Efficiency Direct materials \$ 693,880 \$ 12,702 F \$ 33,200 U Direct labor \$ 286,900 \$ 4,000 U \$ 15,100 U Variable manufacturing overhead \$ 182,400 \$ 5,000 F \$ ?† U

*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) Total Units Produced 19,000 Working: Total Units produced = Total Standard Cost/Standard Cost per unit So Total Standard cost Standard Cost per Unit Total Units produced Direct Materials \$                  6,93,880 \$                                36.52 19,000 Direct Labor \$                  2,86,900 \$                                15.10 19,000 Variable Manufacturing Overhead \$                  1,82,400 \$                                  9.60 19,000 2) Pounds of direct material purchased and used in production 43,800 Working: Direct Material Quantity variance = (Standard Quantity - Actual Quantity)*Standard Price \$                33,200 U = (41800-Actual Quantity)*16.60 \$                   2,000 U = 41800-Actual Quantity Actual Quantity = 41800+2000 Actual Quantity = 43,800 Working: Standard quantity of Material = Total Units produced x Standard quantity per unit = 19,000 x 2.20 pounsds = 41,800 3) Actual cost per pound of material \$ 16.31 Working: Material Price Variance = (Standard Price-Actual Price)*Actual Quantity \$              12,702 F = (16.60-Actual Price)*43800 0.29 F = 16.60-Actual Price Actual Price = 16.60-0.29 Actual Price = \$                        16.31 4) Actual direct labor-hours were worked during the period 20,000 hours Working: Direct Labor efficiency Variance = (Standard Labor hours -Actual labor hours)*Standard Labor rate 15100 U = (19000-Acual labor hours)*15.10 1000 U = 19000-Acual labor hours Actual Labor hours = 19000+1000 Actual Labor hours = 20,000 Working: Standard direct labor hours = Actual units produced x Standard labor hours per unit = 19,000 x 1.00 = 19,000