Return to question 4 Standard Cost per Unit Actual Cost per Unit 25 points Direct materials: Standard: 1.80 feet at $3.00 per foot Actual: 1.80 feet at $3.30 per foot 5.40 $ 5.94 Direct labor: Standard: 0.90 hours at $18.00 per hour Actual: 0.92 hours at $17.50 per hour 16.20 16.10 Variable overhead: Standard: 0.90 hours at $5.00 per hour Actual: 0.92 hours at $4.50 per hour 4.50 4.14 $26.10 $26.18 Total cost per unit 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 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 12,000 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. Materials price and quantity variances. b. Labor rate and efficiency variances. C. Variable overhead rate and efficiency variances 2. How much of the $0.08 excess unit cost is traceable to each of the variances computed in (1) above 3. How much of the $0.08 excess unit cost is traceable to apparent inefficient use of labor time? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs belovw Required Required Required 2 How much of the $0.08 excess unit cost is traceable to each of the variances computed in (1) above. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your answers to 2 decimal places.) Show less Materials: Price variance Ul 6,480.0 Quantity variance 0 None 6,480.00 U Labor Rate variance Effici 5,520.0 4,320.0 variance 1,200.00 F Variable overhead Rate variance Efficiency variance 5,520 1,200 4,320.00 F $ 960.00U Required 3 Excess of actual over standard cost per unit Required 1