help solving 8) and filling out the june revised standards table using the info below

question 8) below

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 Actual Cost per Cost per Unit Unit Direct materials: Standard: 1.80 feet at $1.00 per foot $ 1.80 Actual: 1.75 feet at $1.40 per foot $ 2.45 Direct labor Standard: 0.90 hours at $15.00 per hour 13.50 Actual: 0.95 hours at $14.60 per hour 13.87 Variable overhead: Standard: 0.90 hours at $6.00 per hour 5.40 Actual: 0.95 hours at $5.60 per hour 5.32 Total cost per unit $20.70 $21.64 Excess of actual cost over standard cost per unit $0.94 The production superintendent was pleased when he saw this report and commented: "This $0.94 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 10,000 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials. $ 7,000 U $ 500 F $ 1a. Materials price variance Materials quantity variance 1b. Labor rate variance Labor efficiency variance 1c. Variable overhead rate variance Variable overhead efficiency variance 3,800 F 7,500 U $ $ 3,800F 3,000 U $ How much of the $0.94 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.) S 0.700 0.05F 0.65 U 0.38 F Materials: Price variance Quantity variance Labor: Rate variance Efficiency variance Variable overhead: Rate variance Efficiency variance Excess of actual over standard cost per unit 0.750 0.37 (U 0.38 F 0.30 U 0.08 F $ 0.94 U How much of the $0.94 excess unit cost is traceable to apparent inefficient use of labor time? (Indicate the variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). In positive values. Do not round intermediate calculations. Round your final answers to 2 decimal places.) $ 0.940 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 0.75 U 0.30u 1.05 U $ 0.11 F b) Production for planning budget 9,000 Actual production Planning budget at 90% 10,000 9,000 c) Planning budget revenue $405,000 Sales units Budgeted selling price Budgeted sales revenue 9,000 $45 $405,000 d) Flexible budgeted revenue $450,000 Number of units produced Budgeted selling price Budgeted sales revenue 10,000 $45 $450,000 A. predertemined fixed overhead rate = Budged ovrhead/budgeted labor hours = $85000/ (0.9 hoursX 10000 units) = $9.44 per DLH B. fixed overhead Applied = actual labor hoursX Pre-determined rate (0.95 hourX 10000 units) X 9.44 $89,680 overapplied fixed overhead = fixed overhead that would have been Applied-actual fixed overhead = 89680 - 88000 $1,680 journal entry accounts debit Credit Fixed overhead 1680 COGS 1680 To record over-applied overhead. D. Fixed overhead included in COGS = 89680 - 1680 $88.000 Question 3) Materials a) Planning expense = Budgeted units x Standard feet per unit x standard cost per foot = 9,000 x 1.8 x 1.0 = 16,200 b) Flexible expense = Actual units x Standard feet per unit x Standard cost per foot = 10,000 x 1.8 x 1.0 = 18,000 c) Actual expense = Actual units x Actual feet per unit x Actual cost per foot = 10,000 x 1.75 x 1.4 = 24,500 d) Budget (Only required part) Planning Flexible Variance Variance Actual budget budget 2 = 1-3 3 4= 3-5 5 Direct 1,800 6,500 16,200 18,000 materials 24,500 (U) (U) Question 4) Labour a) Planning expense = Budgeted units x Standard hrs per unit x Standard rate per hour = 9,000 x 0.9 x 15 = 121,500 b) Flexible expense = Actual units x Standard hrs per unit x Standard rate per hour = 10,000 x 0.9 x 15 = 135,000 c) Actual expense = Actual units x Actual hrs per unit x Actual rate per hour = 10,000 x 0.95 x 14.6 = 138,700 d) Budget report (only required part) Planning budget Variance Flexible budget Variance Actual 2 = 1-3 4 = 3-5 5 Direct labour 121,500 13,500 (U) 135,000 3,700 (U) 138,700 3 Answer Q-5 Part (a). Variable overhead expense Planning budget expense Planning budget unit 9000 Standard Variable overhead per unit 5.4 Total budgeted expense planned output 48600 Part (b) Variable overhead expense Flexible budget expense Actual units 10000 Standard Variable overhead per unit 5.4 Total flexible budgeted expense for actual output 54000 Part (c) Variable overhead expense Actual expense Actual units 10000 Actual overhead per unit 5.32 Total Actual expense for actual output 53200 Answer Q-6 Part(a) Selling and Administrative expense Planning budget expense Expense amount given 4000 Planning budget unit 9000 Budgeted selling price 45 Add:percentage of expense 6% of sales amount (9000 x 45) (405000 x 6%) 24300 Actual units 9000 Budgeted direct material cost 1.8 8% of direct material cos (9000 x 1.8) (16200 x 8%) 1296 Total selling and admin expense for planned output 29596 Part (b) Selling and Administrative expense Flexible budget expense Expense amount given 4000 Actual units 10000 Budgeted selling price 45 Add:percentage of expense 6% of sales amount (10000 x 45) (450000 x 6%) 27000 Actual units 100001 Budgeted direct material cost 1.8 8% of direct material cos (10000 x 1.8) (18000 x 8%) 1440 Total selling and admin eynense for actual output 32440 Perry Company Budgeted Report Month ending may 31 Planning budget (1) Variance (2)=(1)-(3) F/UFlexible Budget (3) Variance(4)=3)-(5)F/UActual Result (5) Units 19000 10000 10000 sales revenue 405000 -45000 F 450000 0 450000 Cost of goods sold DM 16200 -1800 U 18000 -6500 U 24500 DL 121500 -13500 U 135000 -3700 U 138700 VOH 48600 -5400 U 54000 800 F 53200 FOH 85000 |-4680 U 189680 1680 F 88000 Total COGS271300 -25380 U 296680 -7720 U 304400 S& A Expense 29596 -2844 U 32440 -19560 U $2000 NOI 104104 -16776 F 120880 27280 U 93600 8) The company wants to update their standards used in budgeting and accounting process to reflect certain changes they are expecting. a) Material price: Management is working with their materials supplier to negotiate a new price/cost of their direct material. Koontz Company is looking for a price that would half the price variance they saw in May. What price per foot will management want to negotiate? Hint - Use MPV = (SP-AP)AQ; Set material price variance to 50% of May's variance (either in Ss or per unit) and solve for Actual Price. This will be the new material price standard for June. Show your work here and include your answers in the table below including the highlighted square. Remember to express your answer in terms of per foot" price. b) The production supervisor is implementing some changes to production that are expected to improve the materials quantity variance. With these changes, the supervisor believes May's favorable quantity variance would have been doubled. Using MQV = (SQ-AQ)SP; Solve for Actual Quantity that would have doubled May's materials quantity variance. Remember to express your answers in terms of per unit. This will be the new quantity standard for June. Include this in the table below for the highlighted square. c) The company has been providing additional training for their employees and various changes to the production process such that they expect labor efficiency to improve. The company believes June's production can meet the current labor standard (unchanged from May's hour per unit). What will the standard hour per unit be for June? Include in the highlighted square below. - d) The company has increased the wages of its employees by 5% to attempt to provide an incentive and improve moral of the employees. This 5% increase is to the Actual labor rate paid in May. This will be the new standard labor rate for June. Calculate the new standard per hour and include it in the highlighted square below. e) Variable overhead will be applied based on standard hours for June just as it was in May. Include the standard in the highlighted square below. The overhead budget prepared by accounting indicates the rate will be $0.20 per hour lower than last period's actual variable overhead. What is the new standard variable overhead rate? Include the rate in the highlighted square below. f) Calculate the standard cost per unit for materials, labor and variable overhead and complete the table below. June Revised Standards Standard Cost per Unit Direct materials: Standard: feet at per foot Direct labor: Standard: hours at per hour Variable OH Standard: hours at per hour Total Cost per unit MAT