CASE 10-17 Working Backwards from Variance Data LO10-1, LO10-2, LO10-3 Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: (1) (2) Standard Standard Standard Quantity Price Cost Inputs or Hours or Rate (1) x (2) Direct materials . . ..... 6 pounds $3 per pound $ 18.00 Direct labor 0.8 hours $15 per hour 12.00 Variable manufacturing overhead 0.8 hours $3 per hour 2.40 Total standard cost per unit $32.40 Variances Reported Total Standard Price Quantity or Cost* or Rate Efficiency Direct materials . . $405,000 $6,900 F $9,000 U Direct labor . ... $270,000 $14,550 U $21,000 U Variable manufacturing overhead . $54,000 $1,300 F $? U *Applied 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: 1 . How many units were produced last period? 2 . How many pounds of direct material were purchased and used in production? 3 . What was the actual cost per pound of material? 4 . How many actual direct labor-hours were worked during the period? 5. What was the actual rate paid per direct labor-hour? 6 . How much actual variable manufacturing overhead cost was incurred during the period