Question 6. Malcom Ltd manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Actual cost per unit $5.94 Standard cost per unit Direct materials: Standard: 108 feet at $3 per $5.40 foot Actual: 1.80 feet at $3.30 per foot Direct labor: Standard: 0.90 hours at $18 per 16.20 hour Actual: 0.92 hours at $17.50 per hour Variable overhead: Standard: 0.90 hours at $5 per 4.50 hour Actual: 0.920 hours at $4.50 per hour Total cost per unit 26.10 Excess of actual cost over standard cost per unit 16.10 4.14 26.18 $0.08 The production superintendent was pleased when he saw this report and commented; This excess $0.08 cost is well within 2 percent limit management has set for acceptable variances. Its obvious that there's not much worry about this product. Actual production for the month was 12000 units. Variable overhead cost is assigned to products on the basis of direct labor hours. There were no beginning or ending inventories of materials. Required: 1. Compute the following variances for May A) Material price and quantity variance (1 mark) B) Labor rate and efficiency variances (1 mark) C) Variable overhead rate and efficiency variance (1 mark) 2. How much of the $0.08 excess unit cost is traceable to each of the variances computed (1) above (3 mark)