M Question 3 - Ch 10 Prob 40 marl x + V X C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%2525%252Fnewconnect.mheducation.com%252F#/activity... @ * Relaunch to update Ch 10 Prob 40 marks i Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 3 Problem 10-24 Basic Variance Analysis; the Impact of Variances on Unit Costs [LO2, LO3, LO4] 10 Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with points actual cost data for May. Standard Actual Cost per Cost per Unit Unit Direct materials: Standard: 1.80 metres at $3.00 per metre $ 5.40 Actual: 1.80 metres at $3.30 per metre $ 5.94 Direct labour: Standard: 0.90 hours at $18.00 hour $16.20 Actual: 0.92 hours at $17.50 per hour 16.10 Variable overhead: Standard: 0.90 hours at $5.00 per hour $ 4.50 Actual: 0.92 hours at $4.50 per hour 4. 14 Total cost per unit $26.10 $ 26.18 Excess of actual cost over standard cost per unit $0 . 08 The production superintendent was pleased when he saw this report and commented: "This $0.08 excess cost is well within the 2% 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 12,000 units. Variable overhead cost is assigned to products on the basis of direct labour-hours. There were no beginning or ending inventories of materials. Required: 4 CommitA the following. or for Mai.. Mc Graw Hill Type here to search O W 8.C Light rain ~9 0 6 4) ENG 11:51 AM 11/10/2023M Question 3 - Ch 10 Prob 40 marl x + V X C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity... @ * Relaunch to update Ch 10 Prob 40 marks i Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 3 Required: 1. Compute the following variances for May: a. Materials price and quantity variances. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).) 10 points Answer is complete and correct. Materials price variance $ 6,480 U Materials quantity variance $ ONone b. Labour rate and efficiency variances. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).) Answer is complete and correct. Labour rate variance $ 5,520 F Labour efficiency variance $ 4,320 U Mc Graw Hill Type here to search W 8'C Light rain ~0 0 / 4) ENG 11:51 AM 11/10/2023M Question 3 - Ch 10 Prob 40 marl x + V X C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%2525%252Fnewconnect.mheducation.com%252F#/activity... @ * Relaunch to update Ch 10 Prob 40 marks i Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 3 c. Variable overhead spending and efficiency variances. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).) 10 Answer is complete and correct. points Variable overhead rate variance $ 5,520 F Variable overhead efficiency variance $ 1,200 U 2. How much of the $0.08 excess unit cost is traceable to each of the variances computed in Requirement 1 above. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your answers to 2 decimal places.) x Answer is complete but not entirely correct. Materials: Price variance $ 6,480.00 X U Quantity variance 0.00 None |6,480.00 U Labour: Mc Graw Hill Type here to search 2 O M W 8'C Light rain ~0 0 / 4) ENG 11:52 AM 11/10/2023M Question 3 - Ch 10 Prob 40 marl x + V X C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%2525%252Fnewconnect.mheducation.com%252F#/activity... @ * Relaunch to update Ch 10 Prob 40 marks i Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 3 2. How much of the $0.08 excess unit cost is traceable to each of the variances computed in Requirement 1 above. (Input all amounts 10 as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect points (i.e., zero variance). Round your answers to 2 decimal places.) x Answer is complete but not entirely correct. Materials: Price variance $ 6,480.00 X U Quantity variance 0.00 None 6,480.00 U V Labour: Rate variance 5,520.00 X F Efficiency variance 4,320.00 X U V ,200.00 F V Variable overhead Rate variance 5,520.00 X F Efficiency variance 1,200.00 X U 4,320.00 F V Excess of actual over standard cost per unit S 960.00 U Mc Graw Hill Type here to search O W 8'C Light rain ~0 0 ( @ 1) ENG 11:52 AM 11/10/2023M Question 3 - Ch 10 Prob 40 marl x + V X C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity... @ * Relaunch to update Ch 10 Prob 40 marks i Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 3 LALESS UI actual UVEI Stallualu LUSI PEI UIIRL JUU.UV 10 points 3. How much of the $0.08 excess unit cost is traceable to apparent inefficient use of labour time? (Input all values as positive amounts. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round intermediate calculations. Round your final answers to 2 decimal places.) x Answer is complete but not entirely correct. Excess of actual over standard cost per unit 960.00 X U Less portion attributable to labour inefficiency Labour efficiency variance 4,320.00 X U Variable overhead efficiency variance 1,200.00 X U 5,520.00 U Portion due to other variances $ 4,560.00 U X 4. This part of the question is not part of your Connect assignment. Mc Graw Hill Type here to search m O W 8'C Light rain ~0 0 / 4) ENG 11:52 AM 11/10/2023