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 these products are shown below, along with actual cost data for May.

image text in transcribed
image text in transcribed
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 pleased when he saw this report and commented: - inis bu.44 vava wa. is well 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 14,000 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. Moterials price and quantity variances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. 2. How much of the $0.44 excess unit cost is traceable to each of the variarces computed in requirement 1 . 3. How much of the $0.44 excess unit cost is troceable to apparent inefficient use of labor time? Actual production for the month was 14,000 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. Variable overhead rate and efficiency variances. 2. How much of the $0.44 excess unit cost is traceable to each of the variances computed in requirement 1. 3. How much of the $0.44 excess unit cost is traceable to apparent inefficient use of labor time? Complete this question by entering your answers in the tabs below. How much of the $0.44 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 unfavorabie, and "None" for no effect (L.e., zero variance), Input all amounts as positive values. Do not round intermediate calculations. Round your final answers to 2 decimal places.)

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_2

Step: 3

blur-text-image_3

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

Auditing Assurance And Risk

Authors: W. Robert Knechel, Steve Salterio, Brian Ballou

2rd Edition

0324022131, 978-0324022131

More Books

Students also viewed these Accounting questions

Question

Recognize and discuss the causes of culture shock

Answered: 1 week ago