Koontz Company manufactures a number of products. The standards relating to one of these products are...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard Cost per Actual Cost per Unit Direct materials: Standard: 1.80 feet at $2.80 per foot Actual: 1.75 feet at $3.00 per foot Direct labor: Standard: 0.90 hours at $17.00 per hour Actual: 0.95 hours at $16.40 per hour Variable overhead: Standard: 0.90 hours at $7.40 per hour Actual: 0.95 hours at $7.00 per hour Unit $ 5.04 15.30 $ 5.25 15.58 6.66 6.65 $27.00 $27.48 Excess of actual cost over standard cost per unit $0.48 Total cost per unit The production superintendent was pleased when he saw this report and commented: "This $0.48 excess cost is well within the 5 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product." Actual production for the month was 14,500 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials. Required: 1. Compute the following variances for May: a. Materials price and quantity variances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. 2. How much of the $0.48 excess unit cost is traceable to each of the variances computed in (1) above. 3. How much of the $0.48 excess unit cost is traceable to apparent inefficient use of labor time? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much of the $0.48 excess unit cost is traceable to each of the variances computed in (1) above. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your answers to 2 decimal places.) Materials: Price variance Quantity variance Labor: Rate variance Efficiency variance Variable overhead: Rate variance Efficiency variance 0.00 0.00 0.00 Excess of actual over standard cost per unit $ 0.00 Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard Cost per Actual Cost per Unit Direct materials: Standard: 1.80 feet at $2.80 per foot Actual: 1.75 feet at $3.00 per foot Direct labor: Standard: 0.90 hours at $17.00 per hour Actual: 0.95 hours at $16.40 per hour Variable overhead: Standard: 0.90 hours at $7.40 per hour Actual: 0.95 hours at $7.00 per hour Total cost per unit Unit $ 5.04 $ 5.25 15.30 6.66 15.58 $27.00 6.65 $27.48 Excess of actual cost over standard cost per unit $0.48 The production superintendent was pleased when he saw this report and commented: "This $0.48 excess cost is well within the 5 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product." Actual production for the month was 14,500 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials. Required: 1. Compute the following variances for May: a. Materials price and quantity variances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. 2. How much of the $0.48 excess unit cost is traceable to each of the variances computed in (1) above. 3. How much of the $0.48 excess unit cost is traceable to apparent inefficient use of labor time? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much of the $0.48 excess unit cost is traceable to apparent inefficient use of labor time? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round your final answers to 2 decimal places.) Excess of actual over standard cost per unit Less portion attributable to labor inefficiency: Labor efficiency variance Variable overhead efficiency variance Portion due to other variances. 0.00 $ 0.00 Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard Cost per Actual Cost per Unit Direct materials: Standard: 1.80 feet at $2.80 per foot Actual: 1.75 feet at $3.00 per foot Direct labor: Standard: 0.90 hours at $17.00 per hour Actual: 0.95 hours at $16.40 per hour Variable overhead: Standard: 0.90 hours at $7.40 per hour Actual: 0.95 hours at $7.00 per hour Unit $ 5.04 15.30 $ 5.25 15.58 6.66 6.65 $27.00 $27.48 Excess of actual cost over standard cost per unit $0.48 Total cost per unit The production superintendent was pleased when he saw this report and commented: "This $0.48 excess cost is well within the 5 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product." Actual production for the month was 14,500 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials. Required: 1. Compute the following variances for May: a. Materials price and quantity variances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. 2. How much of the $0.48 excess unit cost is traceable to each of the variances computed in (1) above. 3. How much of the $0.48 excess unit cost is traceable to apparent inefficient use of labor time? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much of the $0.48 excess unit cost is traceable to each of the variances computed in (1) above. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your answers to 2 decimal places.) Materials: Price variance Quantity variance Labor: Rate variance Efficiency variance Variable overhead: Rate variance Efficiency variance 0.00 0.00 0.00 Excess of actual over standard cost per unit $ 0.00 Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard Cost per Actual Cost per Unit Direct materials: Standard: 1.80 feet at $2.80 per foot Actual: 1.75 feet at $3.00 per foot Direct labor: Standard: 0.90 hours at $17.00 per hour Actual: 0.95 hours at $16.40 per hour Variable overhead: Standard: 0.90 hours at $7.40 per hour Actual: 0.95 hours at $7.00 per hour Total cost per unit Unit $ 5.04 $ 5.25 15.30 6.66 15.58 $27.00 6.65 $27.48 Excess of actual cost over standard cost per unit $0.48 The production superintendent was pleased when he saw this report and commented: "This $0.48 excess cost is well within the 5 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product." Actual production for the month was 14,500 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials. Required: 1. Compute the following variances for May: a. Materials price and quantity variances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. 2. How much of the $0.48 excess unit cost is traceable to each of the variances computed in (1) above. 3. How much of the $0.48 excess unit cost is traceable to apparent inefficient use of labor time? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much of the $0.48 excess unit cost is traceable to apparent inefficient use of labor time? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round your final answers to 2 decimal places.) Excess of actual over standard cost per unit Less portion attributable to labor inefficiency: Labor efficiency variance Variable overhead efficiency variance Portion due to other variances. 0.00 $ 0.00
Expert Answer:
Answer rating: 100% (QA)
Required 1 Materials price variance 175 ft x 300ft 18 ft x 28ft 015 unfavorable Materials ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Explain the various costs associated with maintaining supply chain inventory
-
Farley Bains, an auditor with Nolls CPAs, is performing a review of Indigo Company's Inventory account. Indigo did not have a good year, and top management is under pressure to boost reported income....
-
Regarding the genetic DMA, the term anti - parallel refers to the fact
-
In Exercises 1138, use the given conditions to write an equation for each line in point-slope form and slope-intercept form. Slope = 2, passing through (3, 5)
-
President Bill Clinton's policy in 1993 was designed to reduce the deficit but increase employment. a. Why would such a policy not fit well in the multiplier model? b. Explain in words how such a...
-
An experiment to determine the effect of several methods of preparing cultures for use in commercial yogurt was conducted by a food science research group. Three batches of yogurt were prepared using...
-
Campagna Company expects to have a cash balance of \($46,000\) on January 1, 2002. Relevant monthly budget data for the first 2 months of 2002 are as follows. Collections from customers: January...
-
Custom Homebuilders (CH) designs and constructs high-end homes on large lots owned by customers. CH has developed several formulas, which it uses to quote jobs. These include costs for materials,...
-
2 D is a narrow dish bounded by y = x and y x4, with a mass density p(x,y) = xy. If (x,y) is the center of mass of the dish, find x and = X y.
-
Solve for Zz. Submit your answer in terms of degrees. > A 93 2 B
-
Discuss the nature and role of assessment in trauma counseling. Compare and contrast different methods of assessment discuss by Briere & Scott and Levers, or other approaches that are familiar with,...
-
One year ago, stock X was trading at a split - adjusted price of $ 8 8 . 9 5 per share. Assume a year ago, you had the opportunity to buy or sell short 1 0 0 shares using a 6 0 % margin account....
-
East Bank's lending provisions (for bad and doubtful debt) in its balance sheet as at the 1/1/2020 is $87.6 million. East Bank predicts that $36.8 million of its existing pool of loans will be...
-
Common stock value-Variable growth Lawrence Industries' most recent annual dividend was $1.39 per share (Do $1.39), and the firm's required return is 10%. Find the market value of Lawrence's shares...
-
Capital asset pricing model (CAPM) For the asset shown in the following table, use the capital asset pricing model to find the required return. (Click on the icon here in order to copy the contents...
-
11. Find a function f whose graph has slope (x) = 3-4x and goes through the point (1,-2).
-
True & False The basis of an asset must be reduced by the depreciation allowable, 2. Adjusted gross income (AGI) is the basis for a number of phase-outs of deductions. 3. A change to adjusted gross...
-
Journalize the following transactions for Harlem Manufacturing. (a) Incurred direct labor costs of \($24,000\) for 3,000 hours. The standard labor cost was \($24,300\). (b) Assigned 3.000 direct...
-
Napier Company's standard labor cost of producing one unit of Product DD is 3.9 hours at the rate of \($12.00\) per hour. During August, 40,800 hours of labor are incurred at a cost of \($12.10\) per...
-
The follovving direct materials and direct labor data pertain to the operations of Juan Manufacturing Company for the month of August Instructions (a) Compute the total, price, and quantity variances...
Study smarter with the SolutionInn App