Question

Direct materials 2.20 pounds $ 16.80 per pound $ 36.96 Direct labor 1.00 hours $ 15.50 per hour $ 15.50 Variable manufacturing overhead 1.00 hours $ 9.50 per hour $ 9.50 Total standard cost per unit $ 61.96 Total Standard Cost*Footnote asterisk Variances Reported Price or Rate Quantity or Efficiency Direct materials $ 554,400 $ 10,150 F $ 33,600 U Direct labor $ 232,500 $ 3,200 U $ 15,500 U Variable manufacturing overhead $ 142,500 $ 5,000 F $ ?question mark U *Footnote asteriskApplied to Work in Process during the period. The company's manufacturing overhead cost is applied to production on the basis of direct labor-hours. All of the materials purchased during the period were used in production. Work in process inventories are insignificant and can be ignored. Required: How many units were produced last period? How many pounds of direct material were purchased and used in production? What was the actual cost per pound of material? Note: Round your answer to 2 decimal places. How many actual direct labor-hours were worked during the period? What was the actual rate paid per direct labor-hour? Note: Round your answer to 2 decimal places. How much actual variable manufacturing overhea

Answer 1

Approximately 635 units were produced last period, 1,395 pounds of material were purchased and used, at an actual cost of $16.80 per pound. Around 1,206 actual direct labor-hours were worked at an actual rate of $192.78 per hour. Without complete data, the actual variable manufacturing overhead can't be determined.

Answer to Student's Question

To find the number of units produced, we first need to calculate the total direct materials variance, which includes both the price and quantity variances. Adding the favorable variance ($10,150 F) and the unfavorable variance ($33,600 U), we get a net variance of $23,450 U. Since all material purchased was used in production, we can divide the total variance by the standard cost per pound to find the quantity of material used:

$23,450 U / $16.80 per pound = 1,395 pounds

Knowing that 2.20 pounds are needed per unit, the number of units produced can be calculated as:

1,395 pounds / 2.20 pounds per unit = 635 units (approx.)

For direct labor, we add the unfavorable rate and efficiency variances ($3,200 U + $15,500 U = $18,700 U) and divide by the standard labor rate per hour:

$18,700 U / $15.50 per hour = 1,206 hours (approx.)

The actual rate paid per direct labor-hour is found by dividing the total direct labor cost by the actual direct labor-hours worked:

$232,500 / 1,206 hours = $192.78 per hour (approx.)

Lastly, to find the actual variable manufacturing overhead, we can calculate it by dividing the total cost by the actual labor-hours, since overhead is applied per labor-hour. With an unspecified actual variable manufacturing overhead, the calculation of the exact overhead cost is not possible.