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.

$1$a$.$ Compute the following variances for May, materials price and quantity variances.

$1$b$.$ Compute the following variances for May, labor rate and efficiency variances.

$1$c$.$ 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 $($i$.$e$.,$ zero variance$).$ Input all amounts as positive

values.$)$

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How much of the $$1\mathrm{.}02$ excess unit cost is traceable to each of the variances computed in

requirement $1.($Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for

unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance$).$ Input all amounts as positive

values. Round your answers to $2$ decimal places.$)$

How much of the $$1\mathrm{.}02$ 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 $($i$.$e$.,$ zero variance$).$ Input all amounts as positive

values. Do not round intermediate calculations. Round your final answers to $2$ decimal

places.$)$

The production superintendent was pleased when he saw this report and commented:

"This $$1\mathrm{.}02$ 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 $16,000$ 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:

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.

How much of the $$1\mathrm{.}02$ excess unit cost is traceable to each of the variances computed

in requirement $1.$

How much of the $$1\mathrm{.}02$ excess unit cost is traceable to apparent inefficient use of

labor time?