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 Cost per Unit Actual Cost per Unit $$3\mathrm{.}603\mathrm{.}85$ Direct materials : Standard : $1\mathrm{.}80$ feet at $$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 $18\mathrm{.}0018\mathrm{.}435\mathrm{.}7627\mathrm{.}365\mathrm{.}7027\mathrm{.}980\mathrm{.}62$ 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