Coontz Company manufactures a number of products. The standards relating to one of these products are shown below, along wit actual cost data for May $ 8.88 17.50 Standard Actual Cost per Cost per Unit Unit Direct materials: Standard: 1.90 feet at $4.40 per foot $.8.36 Actual: 1.85 feet at $4,50 per foot Direct labor: Standard: 0.95 hours at $18.00 per hour 17.10 Actual 1.00 hours at $17.50 per hour Variable overhead: Standard: 0.95 hours at $6.00 per hour 5.70 Actual: 1.00 hours at $5.60 per hour Total cost per unit $31.16 $31.98 Excess of actual cost over standard cost per unit 50.82 The production superintendent was pleased when he saw this report and commented "This $0.82 excess cost is well within the 4 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 18,500 units. Variable overhead cost is assigned to products on the basis of direct labor hours There were no beginning or ending inventories of materials 5.60 Required: 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 $0.82 excess unit cost is traceable to each of the variances computed in (1) above 3. How much of the $0.82 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 la Compute the following variances for May, materials price and quantity variances. 1b. Compute the following variances for May, labor rate and efficiency variances. 1c. Compute the following variances for May, variable overhead rate and efficiency variances. (Indicate the variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). In positive values.) 1a. Materials price variance Materials quantity variance 1b. Labor rate variance Labor efficiency variance 1c. Variable overhead rate variance Variable overhead efficiency variance Pequired 2 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 $0.82 excess unit cost is traceable to each of the variances computed in (1) above 3. How much of the $0.82 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 la Compute the following variances for May, materials price and quantity variances. 1b. Compute the following variances for May, labor rate and efficiency variances. 1c. Compute the following variances for May, variable overhead rate and efficiency variances. (Indicate the variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). In positive values.) 1a. Materials price variance Materials quantity variance 1b. Labor rate variance Labor efficiency variance 1c. Variable overhead rate variance Variable overhead efficiency variance Pequired 2 Required 1 Required 2 Required How much of the $0.82 excess unit cost is traceable to each of the variances computed in (1) above. Ir each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.ei, zero vari 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 Excess of actual over standard cost per unit Required 1 Required 2 Required 3 How much of the $0.82 excess unit cost is traceable to apparent inefficient use of labor time? (Indicate to variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). 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
