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.

The production superintendent was pleased when he saw this report and commented: "This $$0\mathrm{.}24$ 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 $13,000$ units. Varlable overhead cost is assigned to products on the basis of direct

labor$-$hours. There were no beginning or ending inventorles of materlals.

Required:

Compute the following variances for May:

a$.$ Materials price and quantity variances.

b$.$ Labor rate and efficlency variances.

c$.$ Varlable overhead rate and efficlency variances.

How much of the $$0\mathrm{.}24$ excess unit cost is traceable to each of the variances computed in $(1)$ above.

How much of the $$0\mathrm{.}24$ excess unit cost is traceable to apparent inefficient use of labor time?

Complete this question by entering your answers in the tabs below.

$1$a$.$ Compute the following variances for May, materials price and quantity variances.

$1$b$.$ Compute the following variances for May, labor rate and efficiency variances.

$1$c$.$ 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 $($i$.$e$.,$ zero variance$).$ Input all amounts as positive

values.$)$

Show less $A$