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 Uit $ 1.50 5 2.45 13.50 Direct materials: Standard 1.0 feet at $1.00 per foot Actual: 1.25 feet at $1.40 per foot Direct labor Standard: 0.90 hours at $15.00 per hour Actual: 0.95 hours at $14:60 per hour Variable overhead Standard: 0.90 hours at $6.00 per hour Actual: 0.95 hours at 55.60 per hour Total cost per unit Excess of actual cost over standard cost per unit 13.87 5.00 5.32 $21.64 $20.20 50.94 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. 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 $0.94 excess unit cost is traceable to each of the variances computed in (1) above. 3. How much of the $0.94 excess unit cost is traceable to apparent inefficient use of labor time? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required ta. 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 (le, zero variance). Input all amounts as positive values.) show less 18 Material price vinanco Materiais quantity variance Tb Laborrate variance Labor ethiconcy viace ic Vinable overhead rato variance Variable overhead efficiency variance Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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 electing for favorable," for unfavorable, and "None" for no effect (ezero variance). Input all amounts as positive values, Round your answers to 2 decimal places) mences Materials Price vanance Quantity Variance Labor Rate variance Emiciency variance Vanbietverhead Risto variance Ency viance Exces of actual over standard cost per unit Complete this question by entering your answers in the tabs below. Required 1 Required Required How much of the $0.94 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 (ezero variance). Input all amounts as positive values. Do not round Intermediate calculations, Round your final answers to 2 decimal places.) Excess of actus over standard cost per unit Less portion attributable to labor inefficiency Labor efficiency variance Variable overhead officiency vanance Portion due to other variances
