Question

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 month’sproduction 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 August’s 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?

Total standard cost for units producedduring August:
Less standard cost of labor andoverhead:
Direct labor
Variable manufacturing overhead
Standard cost of materials used duringAugust	$0

2.

How many yards of material are required at standard per kit?

Standard cost of materials used duringAugust
Number of units produced
Standard materials cost per kit
Standard materials cost per yard
Number of yards per kit

3

What was the materials price variance for August if there wereno beginning or ending inventories of materials? (Do notround intermediate calculations. Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance).)

Materials price variance
Materials quantity variance
Spending variance	$0

4.

What is the standard direct labor rate per hour?

Standard manufacturing variableoverhead cost for August
Standard manufacturing variableoverhead rate per direct labor-hour
Standard direct labor-hours for themonth
Standard labor cost for the month
Standard direct labor rate perhour

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))

Labor rate variance
Labor efficiency variance

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))

Variable overhead rate variance
Variable overhead efficiencyvariance

7.

Complete the standard cost card for one kit shown at thebeginning of the problem. (Round your answers to 2 decimalplaces.)

	Standard Quantityor Hours			Standard Price or Rate		Standard Cost
Direct materials		yards		$6.00	per yard
Direct labor		hours			per hour
Variable manufacturing overhead		hours		$2.00	per direct labor-hour
Total standardcost per kit						$46.80