Vitalite, Inc., produces a number ofproducts, including a body-wrap kit. Standard variable costsrelating to a single kit are given below:
StandardQuantity
or Hours StandardPrice
or Rate Standard
Cost Direct materials ? $5per yard $ ? Direct labor ? ? ? Variable manufacturing overhead ? $4 perdirect
labor-hour ?
Total standard cost per kit $46
During August, 500 kits weremanufactured and sold. Selected information relating to themonth%u2019s production is given below:
MaterialsUsed DirectLabor Variable
Manufacturing
Overhead Total standard cost* ? $8,500 $1,700 Actual costs incurred $12,000 ? $1,720 Materials price variance ? Materials quantity variance $ 2,200 U Labor rate variance ? Labor efficiency variance ? Variable overhead rate variance ? Variable overhead efficiency variance ?
*For the month'sproduction.
The followingadditional information is available for August%u2019s production ofkits:
Actual direct labor-hours 450 Difference between standard and actual cost per kitproduced during August $.16 U
Required: 1. What was the total standard cost ofthe materials used during August? (Omit the "$" sign in yourresponse.)
Standard cost $
2. How many yards of material arerequired at standard per kit? (Do not round intermediatecalculations. Round your final answer to 2 decimalplaces.)
Number of yards yards per kit
3. What was the materials pricevariance for August if there were no beginning or endinginventories of materials? (Input all amounts as positivevalues. Do not round intermediate calculations. Leave no cellsblank - be certain to enter "0" wherever required. Indicate theeffect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Omitthe "$" sign in your response.)
Material price variance $
4. What is the standard direct laborrate per hour? (Omit the "$" sign in yourresponse.)
Standard direct labor rate $ perDLH
5. What was the labor rate variance forAugust? The labor efficiency variance? (Input all amounts as positivevalues. Do not round intermediate calculations. Leave no cellsblank - be certain to enter "0" wherever required. Indicate theeffect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Omitthe "$" sign in your response.)
Labor rate variance $
Labor efficiency variance $
6. What was the variable overhead ratevariance for August? The variable overhead efficiency variance?(Input all amountsas positive values. Do not round intermediate calculations. Leaveno cells blank - be certain to enter "0" wherever required.Indicate the effect of each variance by selecting "F" forfavorable, "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 forone kit shown at the beginning of the problem. (Do not round intermediatecalculations. Round your answers to 2 decimalplaces. Omit the "$" sign in your response.)
StandardQuantity
or Hours Standard Price or Rate StandardCost Direct materials yards $5per yard $ Direct labor hours $ per hour Variable manufacturing overhead hours $4 per directlabor-hour
Total standard cost per kit $46
Vitalite, Inc., produces a number ofproducts, including a body-wrap kit. Standard variable costsrelating to a single kit are given below:
| StandardQuantity or Hours | StandardPrice or Rate | Standard Cost | ||
| Direct materials | ? | $5per yard | $ ? | |
| Direct labor | ? | ? | ? | |
| Variable manufacturing overhead | ? | $4 perdirect labor-hour | ? | |
| Total standard cost per kit | $46 | |||
| | ||||
During August, 500 kits weremanufactured and sold. Selected information relating to themonth%u2019s production is given below: |
| MaterialsUsed | DirectLabor | Variable Manufacturing Overhead | ||
| Total standard cost* | ? | $8,500 | $1,700 | |
| Actual costs incurred | $12,000 | ? | $1,720 | |
| Materials price variance | ? | |||
| Materials quantity variance | $ 2,200 U | |||
| Labor rate variance | ? | |||
| Labor efficiency variance | ? | |||
| Variable overhead rate variance | ? | |||
| Variable overhead efficiency variance | ? | |||
| *For the month'sproduction. |
| The followingadditional information is available for August%u2019s production ofkits: |
| Actual direct labor-hours | 450 | |
| Difference between standard and actual cost per kitproduced during August | $.16 | U |
| Required: | |
| 1. | What was the total standard cost ofthe materials used during August? (Omit the "$" sign in yourresponse.) |
| Standard cost | $ |
| 2. | How many yards of material arerequired at standard per kit? (Do not round intermediatecalculations. Round your final answer to 2 decimalplaces.) |
| Number of yards | yards per kit |
| 3. | What was the materials pricevariance for August if there were no beginning or endinginventories of materials? (Input all amounts as positivevalues. Do not round intermediate calculations. Leave no cellsblank - be certain to enter "0" wherever required. Indicate theeffect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Omitthe "$" sign in your response.) |
| Material price variance | $ |
| 4. | What is the standard direct laborrate per hour? (Omit the "$" sign in yourresponse.) |
| Standard direct labor rate | $ | perDLH |
| 5. | What was the labor rate variance forAugust? The labor efficiency variance? (Input all amounts as positivevalues. Do not round intermediate calculations. Leave no cellsblank - be certain to enter "0" wherever required. Indicate theeffect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Omitthe "$" sign in your response.) |
| Labor rate variance | $ | |
| Labor efficiency variance | $ |
| 6. | What was the variable overhead ratevariance for August? The variable overhead efficiency variance?(Input all amountsas positive values. Do not round intermediate calculations. Leaveno cells blank - be certain to enter "0" wherever required.Indicate the effect of each variance by selecting "F" forfavorable, "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 forone kit shown at the beginning of the problem. (Do not round intermediatecalculations. Round your answers to 2 decimalplaces. Omit the "$" sign in your response.) |
| StandardQuantity or Hours | Standard Price or Rate | StandardCost | |||
| Direct materials | yards | $5per yard | $ | ||
| Direct labor | hours | $ per hour | |||
| Variable manufacturing overhead | hours | $4 per directlabor-hour | |||
| Total standard cost per kit | $46 | ||||
| | |||||
Related questions
Vitalite, Inc., produces a number of products, including abody-wrap kit. Standard variable costs relating to a single kit aregiven below: |
| StandardQuantity or Hours | StandardPrice or Rate | Standard Cost | ||
| Directmaterials | ? | $6.00 peryard | $ ? | |
| Direct labor | ? | ? | ? | |
| Variable manufacturingoverhead | ? | $2.00 perdirect labor-hour | ? | |
| Total standard costper kit | $46.80 | |||
During August, 530 kits weremanufactured and sold. Selected information relating to the monthâsproduction is given below: |
| MaterialsUsed | DirectLabor | Variable Manufacturing Overhead | ||
| Total standardcost* | ? | $7,420 | $1,484 | |
| Actual costsincurred | $14,100 | ? | $1,570 | |
| Materials pricevariance | ? | |||
| Materials quantityvariance | $ 1,020 U | |||
| Labor ratevariance | ? | |||
| Labor efficiencyvariance | ? | |||
| Variable overheadrate variance | ? | |||
| Variable overheadefficiency variance | ? | |||
| *For the month'sproduction. |
| The following additionalinformation is available for Augustâs production of kits: |
| Actual directlabor-hours | 880 | |
| Difference betweenstandard and actual cost per kit produced during August | $0.20 | U |
| Required: |
| 1. | What was the total standard cost of the materials used duringAugust?
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| 5. | What was the labor rate variance for August? The laborefficiency variance? (Do not round your intermediatecalculations. Indicate the effect of each variance by selecting "F"for favorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance)) | ||||||||||||
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| 6. | What was the variable overhead rate variance for August? Thevariable overhead efficiency variance?(Do not roundintermediate calculations. Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance)) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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