actual cost data for May.

Direct materials:

Standard: $1\mathrm{.}80$ feet at $$2\mathrm{.}00$ per foot

Actual: $1\mathrm{.}75$ feet at $$2\mathrm{.}20$ per foot

Direct labor:

Standard: $0\mathrm{.}90$ hours at $$20\mathrm{.}00$ per hour

Actual: $0\mathrm{.}95$ hours at $$19\mathrm{.}40$ per hour

Variable overhead:

Standard: $0\mathrm{.}90$ hours at $$6\mathrm{.}40$ per hour

Actual: $0\mathrm{.}95$ hours at $$6\mathrm{.}00$ per hour

Total cost per unit

Excess of actual cost over standard cost per unit

Standard Cost

per Unit

$$3\mathrm{.}60$

$18\mathrm{.}00$

$5\mathrm{.}76$

$$27\mathrm{.}36$

Actual Cost

per Unit

$$3\mathrm{.}85$

$18\mathrm{.}43$

$5\mathrm{.}70$

$$27\mathrm{.}98$

The production superintendent was pleased when he saw this report and commented: "This $$0\mathrm{.}62$ 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 $12,500$ 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:

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.

How much of the $$0\mathrm{.}62$ excess unit cost is traceable to each of the variances computed in requirement $1.$

How much of the $$0\mathrm{.}62$ excess unit cost is traceable to apparent inefficient use of labor time?

Complete this question by entering your answers in the tabs below.

$1$a$.$ Compute the following variances for May, materials price and quantity variances.

$1$ b$.$ Compute the following variances for May, labor rate and efficiency variances.

$1$c$.$ Compute the following variances for May, variable overhead rate and efficiency variances. $($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.$)$

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