Hi! Can I please have help with the ones I got wrong? Thank you!
Landers 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 Unit Actual Cost per Unit $4.80 $ 4.96 10.20 Direct materials: Standard: 1.60 feet at $3.00 per foot Actual: 1.55 feet at $3.20 per foot Direct labor: Standard: 0.60 hours at $17.00 per hour Actual: 0.65 hours at $16.40 per hour Variable overhead: Standard: 0.60 hours at $4.00 per hour Actual: 0.65 hours at $3.60 per hour 10.66 2.40 2.34 Total cost per unit $17.40 $ 17.96 Excess of actual cost over standard cost per unit $ 0.56 The production superintendent was pleased when he saw this report and commented: "This $0.56 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 15,000 units. Variable overhead cost is assigned to products on the basis of direct labour-hours. There were no beginning or ending inventories of materials. Required: 1. Compute the following variances for May: a. Materials quantity and price variances. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) Answer is complete and correct. Materials quantity variance Materials price variance $ 2,250 $ 4,650 F U b. Labour efficiency and rate variances. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect i.e., zero variance.) Answer is complete but not entirely correct. U Labour efficiency variance Labour rate variance $12,750 $ 5,850 X F c. Variable overhead efficiency and rate variances. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) Answer is complete and correct. Variable overhead efficiency variance Variable overhead rate variance $ 3,000U $ 3,900 F 2. How much of the $0.56 excess unit cost is traceable to each of the variances computed in (1) above. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) Answer is complete but not entirely correct. $ 0.15 0.31 F U 0.16 1U Materials Quantity variance Price variance Labour: Efficiency variance Rate variance Variable overhead: Efficiency variance Rate variance Excess of actual over standard cost per unit 0.51 U 0.39 F 0.12 X U 0.20U 0.26F 0.06 0.39 F U 3. How much of the $0.56 excess unit cost is traceable to apparent inefficient use of labour time? (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your final answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.) X Answer is complete but not entirely correct. $ 0.39 x U Excess of actual over standard cost per unit Less portion attributable to labor inefficiency: Labour efficiency variance Variable overhead efficiency variance Portion due to other variances U 0.51 0.20 0.71 $ 0.49F
