Problem 11-13 Basic Variance Analysis; the Impact of Variances on Unit Costs [L010-1, LO10-2, L010-3] Actual Cost perl| Cost Unit Direct materials Standard 1,80 feet at $3.00 per foot ctual. 1.75 feet at $3 20 per foot s 540 S 5 60 Direct labor Standard: 0.90 hours at $14.00 per hour Actual: 0 95 hours at $13.40 per hour 12 60 1273 12.73 270247 $20.70 $20 80 Vaniable overhead Standard 0.90 hours at $3.00 per hour Actual, 0 95 hours at $2.60 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 S0 10 excess cost is well within the 1 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 11 000 unts Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials 7 8 0 5 6