You have recently accepted a position with Vitex, Inc., themanufacturer of a popular consumer product. During your first weekon the job, the vice president has been favorably impressed withyour work. She has been so impressed, in fact, that yesterday shecalled you into her office and asked you to attend the executivecommittee meeting this morning for the purpose of leading adiscussion on the variances reported for last period. Anxious tofavorably impress the executive committee, you took the variancesand supporting data home last night to study.
On your way to work this morning,the papers were laying on the seat of your new, red convertible. Asyou were crossing a bridge on the highway, a sudden gust of windcaught the papers and blew them over the edge of the bridge andinto the stream below. You managed to retrieve only one page, whichcontains the following information:
Standard Cost Card Directmaterials, 2.20 pounds at $17.00 per pound $ 37.40 Direct labor, 1.00direct labor-hours at $15.70 per direct labor-hour $ 15.70 Variablemanufacturing overhead, 1.00 direct labor-hours at $9.20 per directlabor-hour $ 9.20
Total StandardCost* Variances Reported
Price
or Rate Quantity or
Efficiency Directmaterials $ 598,400 $ 10,788 F $ 34,000 U Direct labor $ 251,200 $ 3,400 U $ 15,700 U Variablemanufacturing overhead $ 147,200 $ 4,600 F $ ?â U
*Applied to Work inProcess during the period. â Entryobliterated.
You recall that manufacturing overhead cost is applied toproduction on the basis of direct labor-hours and that all of thematerials purchased during the period were used in production. Workin process inventories are insignificant and can be ignored.
It is now 8:30 a.m. Theexecutive committee meeting starts in just one hour; you realizethat to avoid looking like a bungling fool you must somehowgenerate the necessary âbackupâ data for the variances before themeeting begins. Without backup data it will be impossible to leadthe discussion or answer any questions
Questions :
:
1. How many units were producedlast period?
2. How many pounds of directmaterial were purchased and used in production?
3. What was the actual cost per pound of material? (Roundyour answer to 2 decimal places.)
4. How many actual directlabor-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 wasincurred during the period?
You have recently accepted a position with Vitex, Inc., themanufacturer of a popular consumer product. During your first weekon the job, the vice president has been favorably impressed withyour work. She has been so impressed, in fact, that yesterday shecalled you into her office and asked you to attend the executivecommittee meeting this morning for the purpose of leading adiscussion on the variances reported for last period. Anxious tofavorably impress the executive committee, you took the variancesand supporting data home last night to study. |
On your way to work this morning,the papers were laying on the seat of your new, red convertible. Asyou were crossing a bridge on the highway, a sudden gust of windcaught the papers and blew them over the edge of the bridge andinto the stream below. You managed to retrieve only one page, whichcontains the following information: |
| Standard Cost Card | ||
| Directmaterials, 2.20 pounds at $17.00 per pound | $ | 37.40 |
| Direct labor, 1.00direct labor-hours at $15.70 per direct labor-hour | $ | 15.70 |
| Variablemanufacturing overhead, 1.00 direct labor-hours at $9.20 per directlabor-hour | $ | 9.20 |
| Total StandardCost* | Variances Reported | |||||||
| Price or Rate | Quantity or Efficiency | |||||||
| Directmaterials | $ | 598,400 | $ | 10,788 | F | $ | 34,000 | U |
| Direct labor | $ | 251,200 | $ | 3,400 | U | $ | 15,700 | U |
| Variablemanufacturing overhead | $ | 147,200 | $ | 4,600 | F | $ | ?â | U |
| *Applied to Work inProcess during the period. |
| â Entryobliterated. |
You recall that manufacturing overhead cost is applied toproduction on the basis of direct labor-hours and that all of thematerials purchased during the period were used in production. Workin process inventories are insignificant and can be ignored. |
It is now 8:30 a.m. Theexecutive committee meeting starts in just one hour; you realizethat to avoid looking like a bungling fool you must somehowgenerate the necessary âbackupâ data for the variances before themeeting begins. Without backup data it will be impossible to leadthe discussion or answer any questions |
Questions :
| : |
| 1. | How many units were producedlast period? |
| 2. | How many pounds of directmaterial were purchased and used in production? |
| 3. | What was the actual cost per pound of material? (Roundyour answer to 2 decimal places.) |
| 4. | How many actual directlabor-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 wasincurred during the period? |
Related questions
You have recently accepted a position with Vitex, Inc., themanufacturer of a popular consumer product. During your first weekon the job, the vice president has been favorably impressed withyour work. She has been so impressed, in fact, that yesterday shecalled you into her office and asked you to attend the executivecommittee meeting this morning for the purpose of leading adiscussion on the variances reported for last period. Anxious tofavorably impress the executive committee, you took the variancesand supporting data home last night to study. |
On your way to work this morning,the papers were laying on the seat of your new, red convertible. Asyou were crossing a bridge on the highway, a sudden gust of windcaught the papers and blew them over the edge of the bridge andinto the stream below. You managed to retrieve only one page, whichcontains the following information: |
| Standard Cost Card | ||
| Directmaterials, 2.20 pounds at $17.00 per pound | $ | 37.40 |
| Direct labor, 1.00direct labor-hours at $15.70 per direct labor-hour | $ | 15.70 |
| Variablemanufacturing overhead, 1.00 direct labor-hours at $9.20 per directlabor-hour | $ | 9.20 |
| Total StandardCost* | Variances Reported | |||||||
| Price or Rate | Quantity or Efficiency | |||||||
| Directmaterials | $ | 598,400 | $ | 10,788 | F | $ | 34,000 | U |
| Direct labor | $ | 251,200 | $ | 3,400 | U | $ | 15,700 | U |
| Variablemanufacturing overhead | $ | 147,200 | $ | 4,600 | F | $ | ?â | U |
| *Applied to Work inProcess during the period. |
| â Entryobliterated. |
You recall that manufacturing overhead cost is applied toproduction on the basis of direct labor-hours and that all of thematerials purchased during the period were used in production. Workin process inventories are insignificant and can be ignored. |
It is now 8:30 a.m. Theexecutive committee meeting starts in just one hour; you realizethat to avoid looking like a bungling fool you must somehowgenerate the necessary âbackupâ data for the variances before themeeting begins. Without backup data it will be impossible to leadthe discussion or answer any questions |
Questions :
| : |
| 1. | How many units were producedlast period? |
| 2. | How many pounds of directmaterial were purchased and used in production? |
| 3. | What was the actual cost per pound of material? (Roundyour answer to 2 decimal places.) |
| 4. | How many actual directlabor-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 wasincurred during the period? |
You have recently accepted a position with Vitex, Inc., themanufacturer of a popular consumer product. During your first weekon the job, the vice president has been favorably impressed withyour work. She has been so impressed, in fact, that yesterday shecalled you into her office and asked you to attend the executivecommittee meeting this morning for the purpose of leading adiscussion on the variances reported for last period. Anxious tofavorably impress the executive committee, you took the variancesand supporting data home last night to study. |
On your way to work this morning,the papers were laying on the seat of your new, red convertible. Asyou were crossing a bridge on the highway, a sudden gust of windcaught the papers and blew them over the edge of the bridge andinto the stream below. You managed to retrieve only one page, whichcontains the following information: |
| Standard Cost Card | ||
| Directmaterials, 2.10 pounds at $16.90 per pound | $ | 35.49 |
| Direct labor, 1.00direct labor-hours at $15.90 per direct labor-hour | $ | 15.90 |
| Variablemanufacturing overhead, 1.00 direct labor-hours at $9.50 per directlabor-hour | $ | 9.50 |
| Total StandardCost* | Variances Reported | |||||||
| Price or Rate | Quantity or Efficiency | |||||||
| Directmaterials | $ | 603,330 | $ | 10,933 | F | $ | 33,800 | U |
| Direct labor | $ | 270,300 | $ | 3,600 | U | $ | 15,900 | U |
| Variablemanufacturing overhead | $ | 161,500 | $ | 4,300 | F | $ | ?â | U |
| *Applied to Work inProcess during the period. |
| â Entryobliterated. |
You recall that manufacturing overhead cost is applied toproduction on the basis of direct labor-hours and that all of thematerials purchased during the period were used in production. Workin process inventories are insignificant and can be ignored. |
It is now 8:30 a.m. Theexecutive committee meeting starts in just one hour; you realizethat to avoid looking like a bungling fool you must somehowgenerate the necessary âbackupâ data for the variances before themeeting begins. Without backup data it will be impossible to leadthe discussion or answer any questions. |
| Required: |
| 1. | How many units were producedlast period? |
| 2. | How many pounds of directmaterial were purchased and used in production? |
| 3. | What was the actual cost per pound of material? (Roundyour answer to 2 decimal places.) |
| 4. | How many actual directlabor-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 wasincurred during the period? |
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 committee meeting this morning for the purpose of leading a discussion on the variances reported for last period. Anxious to favorably impress the executive committee, you took the variances and supporting data home last night to study.
On your way to work this morning, 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, 2.00 pounds at $16.60 per pound | $ | 33.20 |
| Direct labor, 1.00 direct labor-hours at $15.60 per direct labor-hour | $ | 15.60 |
| Variable manufacturing overhead, 1.00 direct labor-hours at $9.30 per direct labor-hour | $ | 9.30 |
|
| ||
| Total Standard Cost* | Variances Reported | |||||||
| Price or Rate | Quantity or Efficiency | |||||||
| Direct materials | $ | 498,000 | $ | 9,280 | F | $ | 33,200 | U |
| Direct labor | $ | 234,000 | $ | 3,200 | U | $ | 15,600 | U |
| Variable manufacturing overhead | $ | 139,500 | $ | 4,700 | F | $ | ? â | U |
|
| ||||||||
*Applied to Work in Process during the period.
â 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 âbackupâ data for the variances before the meeting begins. Without backup data it will be impossible to lead the discussion or answer any questions..
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?
