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 $ 6.46 $ 7.03 19.00 19.50 Direct materials: Standard: 1.90 feet at $3.40 per foot Actual: 1.85 feet at $3.80 per foot Direct labor: Standard: 0.95 hours at $20.00 per hour Actual: 1.00 hours at $19.50 per hour Variable overhead: Standard: 0.95 hours at $7.00 per hour Actual: 1.00 hours at 56.60 per hour Total cost per unit Excess of actual cost over standard cost per unit 6.65 6.68 $33.13 $32.11 $1.02 The production superintendent was pleased when he saw this report and commented. This $102 excess cost is well within the 4 percent management has set for acceptable variances. It's obvious that there's not much to worry about with the product Actual production for the month was 15,000 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials 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 $102 excess unit cost is traceable to each of the variances computed in above 3. How much of the $102 excess unit cost is traceable to apparent inefficient use of labor time? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required Required Required 1a, Compute the following variances for May, materials price and quantity variances 1b. Compute the following variances for May, labor rate and efficiency variances. ic. Compute the following variances for May, variable overhead rate and efficiency variances (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (t.e., zero variance). Input all amounts as positive values.) Show less 1a Materials price variance Materials quantity vanance 1b Labor rate variance Labor efficiency variance Vanable overhead rate variance Variable overhead efficiency variance Required 2 > Complete this question by entering your answers in the tabs below. Required Required Required How much of the $1.02 excess unit cost is traceable to each of the variances computed in (1) above. Indicate the effect of each variance by selecting for favorable" for unfavorable, and None" for no effect (le, ero variance). Input all amounts as positive values. Round your answers to 2 decimal places) Show less Required Required Required How much of the $1.02 E n cost is acte to apparent wellicent use of labor time? indicate the effect of each variance by selecting for favorable, "U" for navorable, and "None" for no effectuezero variance). Input all amounts as positive values. Do not round intermediate calculations. Round your finanswers to 2 decimal places.) Show less Prevarance Quantity varande Labor Excess of actual over standard cost LSS ponon attratto labor neticiency Emocy vanance Variable overhead Ravanance Enciency variance Exces of actual over standard cost per un Portion due to other variances (Required 2
