Question:
Vitalite, Inc., produces a number of various products, including a body-wrap kit. Standard variable costs relating to a single kit are given below:
Standard Quantity
or Hours Standard Price
or Rate Standard
Cost
Direct materials ? $6 per yard $ ?
Direct labor ? ? ?
Variable manufacturing overhead ? $2 per direct
labor-hour ?
Total standard cost per kit $42
During August, 500 kits were manufactured and sold. Selected information relating to the month's production is provide below:
Materials Used Direct Labor Variable
Manufacturing
Overhead
Total standard cost* ? $8,000 $1,600
Actual costs incurred $10,000 ? $1,620
Materials price variance ?
Materials quantity variance $ 600 U
Labor rate variance ?
Labor efficiency variance ?
Variable overhead rate variance ?
Variable overhead efficiency variance ?
*For the month's production.
The subsequent additional information is available for August's production of kits:
Actual direct labor-hours 900
Difference between actual and standard cost per kit produced during August $.14
Required:
1.
What was the total standard cost of the materials used during August? (Omit the "$" sign in your response.)
Standard cost $
2.
How many yards of material are needed at standard per kit? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Number of yards yards per kit
3.
What was the materials price variance for August if there were no starting or ending inventories of materials?
Material price variance $
4.
What is the standard direct labor rate per hour?
Standard direct labor rate $ per DLH
5.
What was the labor rate variance for August? Determine labor efficiency variance?
6.
What was the variable overhead rate variance for August? The variable overhead efficiency variance?
7.
Evaluate the standard cost card for one kit shown at the beginning of the problem.
Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials yards $6 per yard $
Direct labor hours $ per hour
Variable manufacturing overhead hours $2 per direct labor-hour
Total standard cost per kit $42