number 8a-f please with workings

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. Standard Cost per Unit Actual Cost per Unit $ 2.16 $ 2.80 14.40 14.63 Direct materials: Standard: 1.80 feet at $1.20 per foot Actual: 1.75 feet at $1.60 per foot Direct labor: Standard: 0.90 hours at $16.00 per hour Actual: 0.95 hours at $15.40 per hour Variable overhead: Standard: 0.90 hours at $5.60 per hour Actual: 0.95 hours at $5.00 per hour Total cost per unit Excess of actual cost over standard cost per unit 5.04 4.75 $22.18 $21.60 $0.58 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 $0.58 excess unit cost is traceable to each of the variances computed in (1) above. 3. How much of the $0.58 excess unit cost is traceable to apparent inefficient use of labor time? ed Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 1a. Compute the following variances for May, materials price and quantity variances. 1b. Compute the following variances for May, labor rate and efficiency variances. 1c. Compute the following variances for May, variable overhead rate and efficiency variances. (Indicate the effe variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input as positive values.) 1a. $ 7,350U $ 630 F 1b. $ F Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance $ 5,985 8,400 5,985 U SO 10. $ F $ 2,940 U Explanation Show correct answers 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 $0.58 excess unit cost is traceable to each of the variances computed in (1) above. 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. Required 1 Required 2 Required 3 How much of the $0.58 excess unit cost is traceable to each of the variances computed in (1) above. (Indicate each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). amounts as positive values. Round your answers to 2 decimal places.) $ 0.70 U 0.06 F 0.64 U 0.57 F Materials: Price variance Quantity variance Labor: Rate variance Efficiency variance Variable overhead Rate variance Efficiency variance Excess of actual over standard cost per unit 0.80 U 0.23 U 0.57 F 0.28 U 0.29 F $ 0.58 U 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 $0.58 excess unit cost is traceable to each of the variances computed in (1) above. 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. Required 1 Required 2 Required 3 How much of the $0.58 excess unit cost is traceable to apparent inefficient use of labor time? (Indicate the effe variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input as positive values. Do not round intermediate calculations. Round your final answers to 2 decimal places.) 0.58 U Excess of actual over standard cost per unit Less portion attributable to labor inefficiency: Labor efficiency variance Variable overhead efficiency variance Portion due to other variances 0.80 U 0.28 U U 1.08 0.50 $ F at the end of the Packet. Highlighted items are check figures that will be provided. 1) Koontz Company uses a Flexible budget that is prepared using standards. May's "Planning" production was expected to be 10% less than their actual production. (Actual production times 90%). Koontz's Company sales price is $45 per unit and their inventory levels were consistent from the beginning to the end of the month. Please show your work/calculations here. a) When Inventory levels are unchanged, what does this tell you about the relationship between production levels and sales levels? Answer in full sentence. When inventory levels are unchanged, production level and sales level are the same meaning quantity produced equals quantity sold. b) How many units did Koontz Company plan for in their "Planning Budget" for May? Actual production: 10500units Planning budget: 90% of actual Units planned: 9*10500 - 9450 c) What was their "Planning" budgeted revenue in dollars? Sales price per unit: $45 Planning budget revenue: 45*9450 - 425250 d) What is their "flexible" budgeted revenue for the number of units produced (CONNECT)? Flexible budget revenue: 45*10500 - 472500 e) Enter the revenue amounts in the correct columns on the Budget Report at the end of the Packet. In this case, assume "flexible" budget equals "actual" for revenue. f) If Flexible Budget by definition represents budgeted revenue for actual number of units sold, give two reasons/situations that might cause "actual revenue to be different from "flexible budget" revenue. Answer in full sentences. If flexible budget represents budgeted revenue for actual number of units sold, actual revenue will be different from budgeted revenue because there is a difference in actual price from the budgeted price 2) Fixed manufacturing overhead was budgeted at $85,000 and applied per standard hour of labor. a) Calculate the predetermined Fixed overhead rate per direct labor hour. (Predetermined OH rate - Budgeted Overhead divided by Budgeted labor hours). Standard direct labor hour per unit: 9 Quantity budgeted: 9450 Budgeted direct labor hour: .9*9450 - 8505 Budgeted fixed overhead gyerhead cost: 85000 Predetermined fixed overhead rate per direct labor hour: 85000/8505 - $9.99 b) Determined the amount of Fixed overhead that would have been applied during May. (Applied OH - actual labor hours x predetermined rate). Actual labor hour per unit: 95 Actual direct labor hour: 95*10500 - 9975 Amount of fixed overhead applied: 9975*9.99-99650 c) Assume actual fixed overhead was only $88,000, was fixed overhead over- or under-applied? If Koontz clears its Overhead to COGS, what would the JE be to clear the Fixed Overhead "clearing" account for this amount? Actual fixed overhead - 88000 Applied fixed overhead 99650 Actual - applied: 99650-88000 - 11650 Debit 11650 credit Fixed overhead Cost of goods sold 11650 d) How much fixed overhead would be included in COGS during May? (After the journal entry) Fixed overhead included in COGS in May - 88000 ) Complete the "Planning budget","flexible budget" and "actual amounts in the Budget Report for Fixed overhead. Planning budget fixed overhead: 85000 Flexible budget of fixed overhead: 85000 Actual fixed overhead: 88000 3) For direct material expenses; a) Calculate the "Planning budget" expenses assuming the original production volume (90% of CONNECT) and standards. Budget production: 9450 Standard direct material cost per unit: 2.16 Planning budget direct material expense: 2.16 9450 - 20412 b) Calculate the "flexible budget" expense assuming the actual production volume and standards. Standard direct material cost per unit: 2.16 Units: 10500 Flexible budget direct material expense: 2.16*10500 - 22680 c) Calculate the "actual" expenses using actual production volumes and the actual cost per unit information from CONNECT Actual production: 10500 Actual direct material cost per unit: 2.80 Actual direct material expense: 10500*2.80 - 29400 d) Include this information in the Budget Report appropriately. 4) For direct labor expense: a) Calculate the "Planning budget" expenses assuming the original production volume (90% of CONNECT) and standards. 9450*9*16- 136080 b) Calculate the "flexible budget expense assuming the actual production volume and standards. 10500*9*16-151200 c) Calculate the "actual" expenses using actual production volumes and the actual cost per unit information from CONNECT. 10500* 95*15.4-153615 d) Include this information in the Budget Report appropriately. 5) For variable overhead expense: a) Calculate the "Planning budget" expenses assuming the original production volume (90% of CONNECT) and standards. Planning budget unit: 9450 Standard variable overhead per unit: 5.04 9450*5.04 - 47628 b) Calculate the "flexible budget" expense assuming the actual production volume and standards. Actual units: 10500 Standard variable overhead per unit: 5.04 10500*5.04 -52920 c) Calculate the actual expenses using actual production volumes and the actual cost per unit information from CONNECT. Actual units: 10500 Actual overhead per unit: 4.75 10500*4.75 -49875 d) Include this information in the Budget Report appropriately. 6) Selling and administrative expenses were calculated in the planning budgeted as $4,000 plus 6% of sales revenue plus 8% of direct material costs. a) What would the company have included in the planning budget for selling and administrative expenses for May? Hint - Use other Planning budget" amounts to calculate. Expense amount given: 4000 Planning budget unit: 9450 Budgeted selling price: 45 % of expense: 9450 * 45-425250 425250 * .06 - 25515 Actual units: 9450 Budgeted direct material cost: 2,16 Direct material cost: (9450*2.16) - 20412 (20412.081633 25515+4000+1633= 31148 b) What would Koontz Company's "flexible" budget amount be for May? Hint - Use "flexible budget" amounts to calculate. Expense amount given: 4000 Actual units: 10500 Budgeted selling price: 45 10500 - 45 - 472500 472500.06 - 28350 Actual units: 10500 Budgeted direct material cost: 2.16 10500 1.8 - 18900 18900 .08 - 1512 4000+28350-1512 - 33862 c) Complete the "Planning budget", "flexible budget" and "actual" amounts in the Budget Report for Selling and administrative expenses. Assume actual selling and administrative expenses were $52,000 for May 8) The company wants to update their standards used in budgeting and accounting process to reflect certain changes they are expecting a) Material price: Management is working with their materials supplier to negotiate a new price cost of their direct material. Koontz Company is looking for a price that would "half" the price variance they saw in May. What price per foot will management want to negotiate? Hint - Use MPV - (SP-AP)AQ; Set material price variance to 50% of May's variance (either in Ss or per unit) and solve for Actual Price. This will be the new material price standard for Junc. Show your work here and include your answers in the table below including the highlighted square. Remember to express your answer in terms of "per foot" price. b) The production supervisor is implementing some changes to production that are expected to improve the materials quantity variance. With these changes, the supervisor believes May's favorable quantity variance would have been doubled. Using MQV - (SQ-AQ)SP; Solve for Actual Quantity that would have doubled May's materials quantity variance. Remember to express your answers in terms of "per unit". This will be the new quantity standard for June. Include this in the table below for the highlighted square. c) The company has been providing additional training for their employees and various changes to the production process such that they expect labor efficiency to improve. The company believes June's production can meet the current labor standard (unchanged from May's hour per unit). What will the standard hour per unit be for June? Include in the highlighted square below. I d) The company has increased the wages of its employees by 5% to attempt to provide an incentive and improve moral of the employees. This 5% increase is to the "Actual labor rate paid in May. This will be the new standard labor rate for June. Calculate the new standard per hour and include it in the highlighted square below. e) Variable overhead will be applied based on standard hours for June just as it was in May. Include the standard in the highlighted square below. The overhead budget prepared by accounting indicates the rate will be $0.20 per hour lower than last period's actual variable overhead. What is the new standard variable overhead rate? Include the rate in the nighlighted square below. f) Calculate the standard cost per unit for materials, labor and variable overhead and complete the table below. June Revised Standards Standard Cost per Unit feet at per foot 2.38 Direct materials: Standard Direct labor: Standard: Variable OH Standard: hours at per hour hours at per hour Total Cost per unit