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 16.10 Standard Cost Actual Cost per per Unit Unit Direct materials Standard: 1.80 feet at $3.00 per foot $5.40 Actual 1.50 feet at $3.30 per foot $ 5.14 Direct labor Standard 0.0 hours at 18.00 per hour 16.20 Actualt 0.9 hours at $17.50 per hour Variable overhead Standard: 0.00 hours at 55.00 per hour 4.50 Actuel 0.92 hours at 54.50 per hour 4.16 Total cost per unit $26.10 $26.18 Excess of actual cost over standard cost per unit $ 0.00 The production superintendent was pleased when he saw this report and commented: *This $0,08 excess cost is well within the 2 percent mit 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 12,000 units. Variable overhead cost is assigned to products on the basis of direct labor hours There were no beginning or ending inventones of materials Required: 1. Compute the following variances for May Materials price and quantity variances b. Labor rate and efficiency variances Vatlable overhead rate and efficiency variances 2. How much of the 5008 excess unit cost is traceable to each of the variances computed in (1) above, 2. How much of the 50.08 excess unit cost is traceable to apparent inefficient use of labor time? 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 $0.08 excess unit cost is traceable to each of the variances computed in () above. 3. How much of the $0.08 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 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 (.e., zero variance). Input all amounts as positive values.) Show less 1a Materials price vanance 1a Materials quantity varianco 16. Labor rate vanance 1b Labor efficiency variance 10. Variable overhead rate variance 10 Variable overhead officiency variance Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much of the 50.08 excess 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 "None" for no effect (.e., zero variance). Input all amounts as positive values. Round your answers to 2 decimal places.) Materials Price variance Quantity variance Labor Rato variance Efficiency vanance Variable overhead Rate variance Efficiency vanance Excess of actual over standard cost per unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required How much of the $0.08 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 (e. zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round your final answers to 2 decimal places.) Excess of actual over standard cost per unit Less portion attributable to labor inefficiency Labor efficiency variance Vanable overhead efficiency variance Portion due to other variances
