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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 Undit $ 3.74 $ 9.25 Direct materials Standardi 1.90 feet at $4.60 per foot Actuali 1.85 feet at $5.00 per foot Direct labor Standardi 0.95 hours at $19.00 per hour Actual 1.00 hours at $13.50 per hour Variable overhead Standard) 0.95 hours at 57.00 per hour Actual: 1.00 hours at 56.60 per hour Total cost per unit Excess of actual cost over standard cost per unit 13.50 $33.44 14.35 50.91 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. Labor rate and efficiency variances c. Vanable overhead rate and efficiency variances 2. How much of the $0.91 excess unit cost is traceable to each of the variances computed in (t) above. 3. How much of the $0.91 excess unit cost is traceable to apparent inefficient use of labor time? 3. How much of the $0.91 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. 10. 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 ( zero variance). Input all amounts as positive values.) Show less 1a. Materials price variance Materials quantity variance 16 Labor rate variance Labor efficiency variance 1 Variable overhead rate variance Variable overhead efficiency variance Required 2 >

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