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 Actual Cost per Cost per Unit Unit Direct materials Standard: 1.90 feet at $4.40 per foot $ 8.36 Actual: 1.85 feet at $4.80 per foot $ 8.88 Direct labor: Standardi 0.95 hours at $18.00 per hour 17.10 Actual: 1.00 hours at $17.50 per hour 17.50 Variable overhead: Standard: 0.95 hours at 56.00 per hour 5.70 Actual: 1.00 hours at 55.60 per hour 5.60 Total cost per unit $31.16 $31.98 Bxcess of actual cost over standard cost per unit $0.82 The production superintendent was pleased when he saw this report and commented. This $0 B2 excess cost is well within the 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 18,500 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. b. Labor rate and efficiency variances. c Variable overhead rate and efficiency variances. 2. How much of the $0.82 excess unit cost is traceable to each of the variances computed in (1) above. 3. How much of the $0 82 excess unit cost is traceable to apparent inefficient use of labor time? 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 varian- variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., positive values.) W 1a. Materials price variance Materials quantity variance 1b. Labor rate variance Labor efficiency variance 10. Variable overhead rate variance Variable overhead efficiency variance Recund Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much of the $0.82 excess unit cost is traceable to each of the variances computed in (1) above. (India each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie., zero varian amounts as positive values. Round your answers to 2 decimal places.) Materials Price variance Quantity variance Labor Rate variance Efficiency variance Variable overhead Rate variance Efficiency variance Excess of actual over standard cost per unit Required i Required 2 Required 3 How much of the $0.82 excess unit cost is traceable to apparent inefficient use of labor time? (Indicate the variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). In 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 Variable overhead efficiency variance Portion due to other variances
