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.

Direct materials:

Standard: $1\mathrm{.}80$ feet at $$1\mathrm{.}60$ per foot

Actual: $1\mathrm{.}75$ feet at $$2\mathrm{.}00$ per foot

Direct labor:

Standard: $0\mathrm{.}90$ hours at $$18\mathrm{.}00$ per hour

Actual: $0\mathrm{.}95$ hours at $$17\mathrm{.}40$ per hour

Variable overhead:

Standard: $0\mathrm{.}90$ hours at $$6\mathrm{.}00$ per hour

Actual: $0\mathrm{.}95$ hours at $$5\mathrm{.}60$ per hour

Total cost per unit

Excess of actual cost over standard cost per unit

The production superintendent was pleased when he saw this report and commented: "This $$0\mathrm{.}87$ excess cost 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 $11,500$ units. Variable overhead cost is assigned to products on the basis of direct

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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 $$0\mathrm{.}87$ excess unit cost is traceable to each of the variances computed in $(1)$ above.

How much of the $$0\mathrm{.}87$ excess unit cost is traceable to apparent inefficient use of labor time?

Complete this question by entering your answers in the tab

Required $1$

Required $2$

Required $3$

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

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

$1$c$.$ Compute the following variances for May, variable overhead rati variance by selecting $"F"$ for favorable, $"$U$"$ for unfavorable, and $"$Nc positive values.$)$