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

Direct materials:

Standard: 1.80 feet at $1.00 per foot$ 1.80

Actual: 1.75 feet at $1.40 per foot $ 2.45

Direct labor:

Standard: 0.90 hours at $15.00 per hour13.50

Actual: 0.95 hours at $14.60 per hour 13.87

Variable overhead:

Standard: 0.90 hours at $6.00 per hour5.40

Actual: 0.95 hours at $5.60 per hour 5.32

Total cost per unit$ 20.70 $ 21.64

Excess of actual cost over standard cost per unit $ 0.94

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?

Print Koontz Company manufactures a number of products. The standarde relating to one of these products are shown below, song with actuel cost data for May Standart Cost Gist per Unit Direct materials: Standard: 1.6 feet $1.00 per foot Actual: 1.75 feet 51.40 per foot 51.00 Direct labor Standard: 0.90 hours at $15.00 per hour 13.5 Actual 0.55 hours at 534.6 per hour 13. variable overhead Standard: 0.99 hours 15.00 per hour 5.40 Actualt 0.5 hours at 55.00 per hour Total cost per unit $20.79 Excess of actual cost over standard cost per unit 19.95 The production superintendent was pleased when he saw this report and commented. This $0 94cesco well with the percentimit 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 consigned to product on the basis of director hours There were no beginning or ending inventories of material Required: 1. Compute the following variances for May Materials price and quantity variances b. Laborate and efficiency variante c. Variable overhead rate and efficiency verlances 2. How much of the 50 94 excess unit cost is troceable to each of the varices computed ove 3. How much of the 50.94 excess unit cost is traceable to apparent inefficiente putarents Complete this question by entering your answers in the tabs below. gut Colts well within the 5 1 dbvious 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 base of direct lobornou 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 50.94 excess unit cost is traceable to each of the variances computed in above 3. How much of the 50 94 excess unit cost is traceable to apparent inefficient use of labor time Book Print Complete this question by entering your answers in the tabs below. rences Required 1 Required 2 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 Portavorable," for unfavorable, and "None for no effect .. zero variance). Input a poultive values.) St sa Material price Variance ta. Materials quantity variance 1b. Laborrate variance 15. Labor enciency variance te Variable overhead rate variance te Variable overhead officiency variance Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 1a. Compute the following variances for May, materials price and quantity variances. 1b. Compute the following variances for May, labor rate and efficiency variances. 1c. 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 (1.e., zero variance). Input all amounts au positive values.) Show less 1a. Materials price variance 1a. Materials quantity variance 1b Labor rate variance 1b. Labor efficiency variance tc. Variable overhead rate variano ic Variable overhead efficiency variance Required 2 > DE 3. How much of the $0.94 excess unit cost is traceable to apparent inefficient use of labor time? Print Complete this question by entering your answers in the tabs below. forences Required 1 Required 2 Required 3 How much of the $0.94 extess unit cost is traceable to each of the variances computed in (1) above (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and 'Norie" for no effect de zero variance). Input all amounts as positive values. Round your answers to 2 decimal places.) Materials Price variance Quantity variance Labor Rate variance Eficiency variance Variable overhead Rate variance Efficiency variance Excess of actual over standard cost per unit