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{.}64$ excess cost is well within the $4$

percent IImIt management has set for acceptable varlances. It's obvlous that there's not much to worry about with this product."

Actual production for the month was $17,500$ units. Varlable overhead cost is assigned to products on the basis of direct labor$-$hours.

There were no beginning or ending Inventorles of materlals.

Requlred:

Compute the following varlances for May:

a$.$ Materlals price and quantity varlances.

b$.$ Labor rate and efficlency varlances.

c$.$ Varlable overhead rate and efficlency varlances.

How much of the $$0\mathrm{.}64$ excess unit cost is traceable to each of the varlances computed in requirement $1.$

How much of the $$0\mathrm{.}64$ excess unlt cost is traceable to apparent Inefficient use of labor time?