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Question;Vitalite, Inc., produces a number of products, including a body-wrap kit. Standard variable costs relating to a single kit are given below:Standard Quantityor Hours Standard Priceor Rate StandardCostDirect materials? $6 per yard $?Direct labor???Variable manufacturing overhead? $2 per directlabor-hour?Total standard cost per kit $42During August, 500 kits were manufactured and sold. Selected information relating to the month?s production is given below:Materials Used Direct Labor VariableManufacturingOverheadTotal standard cost*? $8,000 $1,600Actual costs incurred $10,000? $1,620Materials price variance?Materials quantity variance $ 600 ULabor rate variance?Labor efficiency variance?Variable overhead rate variance?Variable overhead efficiency variance?*For the month's production.The following additional information is available for August?s production of kits:Actual direct labor-hours 900Difference between standard and actual cost per kit produced during August $.14 URequired:1.What was the total standard cost of the materials used during August? (Omit the "$" sign in your response.)Standard cost $2.How many yards of material are required at standard per kit? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)Number of yards yards per kit3.What was the materials price variance for August if there were no beginning or ending inventories of materials? (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)Material price variance $4.What is the standard direct labor rate per hour? (Omit the "$" sign in your response.)Standard direct labor rate $ per DLH5.What was the labor rate variance for August? The labor efficiency variance? (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)Labor rate variance $Labor efficiency variance $6.What was the variable overhead rate variance for August? The variable overhead efficiency variance? (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)Variable overhead rate variance $Variable overhead efficiency variance $7.Complete the standard cost card for one kit shown at the beginning of the problem. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)Standard Quantityor Hours Standard Price or Rate Standard CostDirect materials yards $6 per yard $Direct labor hours $ per hourVariable manufacturing overhead hours $2 per direct labor-hourTotal standard cost per kit $42

 

Paper#44661 | Written in 18-Jul-2015

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