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Problem 1 0 - 1 3 ( Algo ) Basic Variance Analysis; the Impact of Variances on Unit Costs [ LO 1 0 - 1
Problem Algo Basic Variance Analysis; the Impact of Variances on Unit Costs LO LO LO 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 Direct materials: Standard: feet at $ per foot $ Actual: feet at $ per foot $ Direct labor: Standard: hour at $ per hour Actual: hour at $ per hour Variable overhead: Standard: hour at $ per hour Actual: hour at $ 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 $ excess cost is well within the percent limit management has set for acceptable variances. It's obvious there's not much to worry about with this product." Actual production for the month was units. Variable overhead cost is assigned to products based on direct laborhours. There were no beginning or ending inventories of materials. Do part only! How much of the $ excess unit cost is traceable to each of the variances computed in requirement Note: Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values. Round your answers to decimal places.
Problem Algo Basic Variance Analysis; the Impact of Variances on Unit Costs LO LO LO
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
Direct materials:
Standard: feet at $ per foot $
Actual: feet at $ per foot $
Direct labor:
Standard: hour at $ per hour
Actual: hour at $ per hour
Variable overhead:
Standard: hour at $ per hour
Actual: hour at $ 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 $ excess cost is well within the percent limit management has set for acceptable variances. It's obvious there's not much to worry about with this product."
Actual production for the month was units. Variable overhead cost is assigned to products based on direct laborhours. There were no beginning or ending inventories of materials.
Do part only!
How much of the $ excess unit cost is traceable to each of the variances computed in requirement
Note: Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie
zero variance Input all amounts as positive values. Round your answers to decimal places.
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