Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, afong wit? actual cost data for May The production supenotendent was pleased when he saw this regort and commentedt "this 80.97 excess cost is well within the 5 percent limit eanahement has set far acceplable valiances its obvious that theres not muchto worly about with thes peoduct" Actuat croduction for the mornti was 12000 units Varable overhead cost is assigned to products on the basis of direct labor hours There Wrie na beginning of ending imentories of materals. Required: 1. Compite the tolowing vailances tor Maye a. Maiertals grice and quanbty vaitances b. Libbor rate and efficlency whiances. E Variable covethead fate and ellisiency varlances 2. Hon mach of the soyg omceis wht cost is traceable lo each of the variances computed in requirement 1 . 3. How moch of the 50.99 ercess unit cost is tracesble to agohaent velficient ine of libec time? 1a. Compute the following variances for May, materials price and quantity variances. 1b. Compute the following variances for May, labor rate and efftiency variances. 1c. Compute the following variances for May, variable overhead rate and efficiency variances. (Indicate the effect of each vatiance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e, zero variance), Input all amounts a5 positive values.) Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, afong wit? actual cost data for May The production supenotendent was pleased when he saw this regort and commentedt "this 80.97 excess cost is well within the 5 percent limit eanahement has set far acceplable valiances its obvious that theres not muchto worly about with thes peoduct" Actuat croduction for the mornti was 12000 units Varable overhead cost is assigned to products on the basis of direct labor hours There Wrie na beginning of ending imentories of materals. Required: 1. Compite the tolowing vailances tor Maye a. Maiertals grice and quanbty vaitances b. Libbor rate and efficlency whiances. E Variable covethead fate and ellisiency varlances 2. Hon mach of the soyg omceis wht cost is traceable lo each of the variances computed in requirement 1 . 3. How moch of the 50.99 ercess unit cost is tracesble to agohaent velficient ine of libec time? 1a. Compute the following variances for May, materials price and quantity variances. 1b. Compute the following variances for May, labor rate and efftiency variances. 1c. Compute the following variances for May, variable overhead rate and efficiency variances. (Indicate the effect of each vatiance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e, zero variance), Input all amounts a5 positive values.)
