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. The production superintendent was plensed when he saw this report and commented: This $0.58 excess cost is woll within the 5 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 10,500 whits. Variable overhead costis 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. Materlals price and quantity variances b. Labor rate and efficiency variances. c. Variable overhead rate and efliciency variances 2. How much of the $0.58 excess unit cost is traceable to each of the variances computed in requirement 1 3. How much of the $0.58 excess unit cost is traceable to apparent inefficient use of labor time? Complete this question by entering your answers in the tabs below. Haw much of the s0.58 excess unit cost is tracestle to apparent inefliclent use of labor time? findicate the effect of each positive values, Do not round intermediate calculations. Round your final answers to 2 decienal places.) Complete this question by entering your answers in the tabs below. How much of the $0.58 excess unit cost is traceable to each of the variances computed in requirement 1 . (Indicate the effect of each varlance by selecting " F " for favorable, " " " for unfavorable, and "None" for no effect (1.e., zero variance), Input all amounts as positive values. Round your answers to 2 decimal places.) 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 $058 excess unit cost is traceable to each of the varlances computed in requirement 1 3. How much of the $0.58 excess unit cost is traceable to apparent inefficient use of labor time? Complete this question by entering your answers in the tabs below. 1a. Compute the following variances for May, materiels price and quanitity variances. 1b. Compute the following vartances for May, lobor rate and efficlency vartances. I. Compute the following variances for May, variable overtiead rate and einclency variances, (Indicate the offect of each vartance by selecting " F" For favorable, " U " for unfavorable, and "None" for no effect (f.e, zero vartance), Input all amounts as positive values.)
