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Can you show the work for #8

Standard Cost per Unit Actual Cost per Unit $ 6.84 $ 7.40 14.70 14.85 Direct materials: Standard: 1.90 feet at $3.60 per foot Actual: 1.85 feet at $4.00 per foot Direct labor: Standard: 1.05 hours at $14.00 per hour Actual: 1.10 hours at $13.50 per hour Variable overhead: Standard: 1.05 hours at $7.00 per hour Actual: 1.10 hours at $6.60 per hour Total cost per unit Excess of actual cost over standard cost per unit 7.35 7.26 $29.51 $28.89 $0.62 The production superintendent was pleased when he saw this report and commented: This $0.62 excess cost is w percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with th Actual production for the month was 16,500 units. Variable overhead cost is assigned to products on the basis of di There were no beginning or ending inventories of materials. Required: 1. Compute the following variances for May: a. Materials price and quantity variances. o. Labor rate and efficiency variances. - Variable overhead rate and efficiency variances. 2. How much of the $0.62 excess unit cost is traceable to each of the variances computed in (1) above. 3. How much of the $0.62 excess unit cost is traceable to apparent inefficient use of labor time? Required 1 Required 2 Required 3 1a. Compute the following variances for May, materials price and quantity 1b. Compute the following variances for May, labor rate and efficiency varia 1c. Compute the following variances for May, variable overhead rate and eft variance by selecting "F" for favorable, "U" for unfavorable, and "None" for as positive values.) 1a. U 1b. Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance $ 12,210 $ 2,970 $ 9,075 $ 11,550 $ 7,260 F U F 1c. $ 5,775 U Required 1 Required 2 Required 3 How much of the $0.62 excess unit cost is traceable to each of the variances computed in (1) above. each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero va amounts as positive values. Round your answers to 2 decimal places.) $ 0.74 U 0.18 F 0.56 U 0.55 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 0.70 U 0.15 U 0.44 F 0.35 U 0.09 F 0.62 U Required 1 Required 2 Required 3 How much of the $0.62 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.) 0.62 U 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 0.70 U 0.35 U 1.05 U 0.43 F 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 $s 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. 4 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 Direct labor: Standard: hours at per hour Variable OH Standard: hours at per hour Total Cost per unit per foot IM