Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Koontz Company manufactures a number of products. The standards relating to one of actual cost data for May products are shown below along with 7

image text in transcribed

Koontz Company manufactures a number of products. The standards relating to one of actual cost data for May products are shown below along with 7 Standard Cost per Unit Actual Cost per Unit $ 8.74 ht 59.25 18.es 01:49.es Direct materials: Standard: 1.90 feet at $4.60 per foot Actual: 1.85 feet at $5.00 per foot Direct labor: Standard: 2.95 hours at $19.ee per hour Actual: 1.ee hours at $18.50 per hour Variable overhead: Standard: 0.95 hours at $7.ee per hour Actual: 1.ee hours at $6.50 per hour Total cost per unit Excess of actual cost over standard cost per unit 18.58 6.65 6.60 $34.35 $ 33.44 $ 0.91 The production superintendent was pleased when he saw this report and commented This $0.91 excess cost is well within the 4 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 19,000 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 Laborrate and efficiency variances. c Variable overhead rate and efficiency variances 2. How much of the $0.91 excess unit cost is traceable to each of the variances computed in (1) above. 3. How much of the $0.91 excess unit cost is traceable to apparent inefficient use of labor Ume

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Empirical Studies On Economics Of Innovation Public Economics And Management

Authors: Mehmet Huseyin Bilgin, Hakan Danis, Ender Demir, Ugur Can

1st Edition

3319501631, 9783319501635

More Books

Students also viewed these Accounting questions

Question

Explain the benefits of a health and wellness strategy

Answered: 1 week ago

Question

Describe the components of a workplace wellness programme

Answered: 1 week ago