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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,

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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 $ 3,60 $ 3.85 18.00 Direct materials: Standard: 1.80 feet at $2.00 per foot Actual: 1.75 feet at $2.20 per foot Direct labor: Standard: 6.90 hours at $28.00 per hour Actual: 0.95 hours at $19.40 per hour Variable overhead: Standard: 0.90 hours at $6.48 per hour Actual: 0.99 hours at $6.00 per hour Total cost per unit Excess of actual cost over standard cost per unit 18.43 5.76 5.70 $27.98 $27.36 $0.62 The production superintendent was pleased when he saw this report and commented: "This $0.62 excess cost is well within the 5 percent imit 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 12,500 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 to. Labor rate and efficiency variances. c Variable overhead rate and efficiency variances 2. How much of the $062 excess unit cost is traceable to each of the variantes computed in (1) above. 3. How much of the $0.52 excess unit cost is traceable to apparent inefficient use of labor time? much of the $0.62 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 "P" for favorable, "U" for unfavorable, and "None" for no effect (ley zero variance). Input all amounts as positive values.) Show less 1a. Materials price variance Materials quantity variance 1b. Labor rate variance Labor efficiency variance 10. Variable overhead rate variance Variable overhead efficiency variance Required 2

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