Managerial Accounting: P10-14 Vitalite, Inc., produces a number of products

Managerial Accounting 
PROBLEM 10–14 Comprehensive Variance Analysis 
Vitalite, Inc., produces a number of 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 DLH ? 
Total standard cost $42 

During August, 500 kits were manufactured and sold. Selected information relating to the month's production is given below: 
                                                                 Materials Used Direct Labor Variable Manufacturing Overhead 
Total standard cost*  ? $8,000 $1,600 
Actual costs incurred  $10,000 ? $1,620 
Direct materials price variance  ? 
Direct materials quantity variance  $600 U 
Direct labor rate variance ? 
Direct labor efficiency variance ? 
Variable overhead rate variance ? 
Variable overhead efficiency variance ? 
*For the month's production. 

The following additional information is available for March's production: 
Actual direct labor-hours 900 
Difference between standard and actual cost per backpack produced during March $0.14 U

1. What was the total standard cost of the materials used during August? 
2. How many yards of material are required at standard per kit? 
3. What was the direct materials price variance for August if there were no beginning or ending inventories of materials? 
4. What is the standard direct labor rate per hour? 
5. What was the direct labor rate variance for August? The labor efficiency variance? 
6. What was the variable overhead rate variance for August? The variable overhead efficiency variance? 
7. Complete the standard cost card for one kit shown at the beginning of the problem.
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