solve 3 a) b) c) and d)

question 3 below

use budget report below for d)

actual costs

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 Actual Cost per Cost per Unit Unit Direct materials: Standard: 1.80 feet at $1.00 per foot $ 1.80 Actual: 1.75 feet at $1.40 per foot $ 2.45 Direct labor Standard: 0.90 hours at $15.00 per hour 13.50 Actual: 0.95 hours at $14.60 per hour 13.87 Variable overhead: Standard: 0.90 hours at $6.00 per hour 5.40 Actual: 0.95 hours at $5.60 per hour 5.32 Total cost per unit $20.70 $21.64 Excess of actual cost over standard cost per unit $0.94 The production superintendent was pleased when he saw this report and commented: "This $0.94 excess cost is well within the 5 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 10,000 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials. $ 7,000 U $ 500 F $ 1a. Materials price variance Materials quantity variance 1b. Labor rate variance Labor efficiency variance 1c. Variable overhead rate variance Variable overhead efficiency variance 3,800 F 7,500 U $ $ 3,800F 3,000 U $ How much of the $0.94 excess unit cost is traceable to apparent inefficient use of labor time? (Indicate the variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). In positive values. Do not round intermediate calculations. Round your final answers to 2 decimal places.) $ 0.940 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 0.75 U 0.30u 1.05 U $ 0.11 F How much of the $0.94 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.) S 0.700 0.05F 0.65 U 0.38 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 0.750 0.37 (U 0.38 F 0.30 U 0.08 F $ 0.94 U b) Production for planning budget 9,000 Actual production Planning budget at 90% 10,000 9,000 c) Planning budget revenue $405,000 Sales units Budgeted selling price Budgeted sales revenue 9,000 $45 $405,000 d) Flexible budgeted revenue $450,000 Number of units produced Budgeted selling price Budgeted sales revenue 10,000 $45 $450,000 3) For direct material expenses; a) Calculate the Planning budget" expenses assuming the original production volume (90% of CONNECT) and standards. b) Calculate the flexible budget expense assuming the actual production volume and standards. c) Calculate the actual expenses using actual production volumes and the actual cost per unit information from CONNECT. d) Include this information in the Budget Report appropriately. Perry Company Budget Report Month Ending May 31, 20xx Flexible Variance F/U Budget (2)=(1)-(3) (3) Planning Budget (1) F/U Variance (4)=(3)-(5) Actual Results (5) units Sales Revenue Cost of Goods Sold: DM DL VOH FOH Total COGS DOMITI S&A Expense NOI Amounts are in $ (d) Planning Budget Units = 9,000 Actual Units = 10,000 Flexible Budget units = 10,000 Budgeted selling price = 45 This selling price will be same in all budgets, because it is given that the flexible budget revenue is equal to actual revenue. Also we know flexible budget selling price will be equal to planning budget selling price. Budget Report (Only Revenue part) Planning Variance (2) Flexible Variance (4) Actual Budget (1) = 1-3 budget (3) = 3-5 results (5) 1,000 Units 9,000 10,000 0 10,000 (Favourable) Sales 45,000 405,000 450,000 0 450,000 Revenue (Favourable) 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 Actual Cost per Cost per Unit Unit Direct materials: Standard: 1.80 feet at $1.00 per foot $ 1.80 Actual: 1.75 feet at $1.40 per foot $ 2.45 Direct labor Standard: 0.90 hours at $15.00 per hour 13.50 Actual: 0.95 hours at $14.60 per hour 13.87 Variable overhead: Standard: 0.90 hours at $6.00 per hour 5.40 Actual: 0.95 hours at $5.60 per hour 5.32 Total cost per unit $20.70 $21.64 Excess of actual cost over standard cost per unit $0.94 The production superintendent was pleased when he saw this report and commented: "This $0.94 excess cost is well within the 5 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 10,000 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials. $ 7,000 U $ 500 F $ 1a. Materials price variance Materials quantity variance 1b. Labor rate variance Labor efficiency variance 1c. Variable overhead rate variance Variable overhead efficiency variance 3,800 F 7,500 U $ $ 3,800F 3,000 U $ How much of the $0.94 excess unit cost is traceable to apparent inefficient use of labor time? (Indicate the variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). In positive values. Do not round intermediate calculations. Round your final answers to 2 decimal places.) $ 0.940 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 0.75 U 0.30u 1.05 U $ 0.11 F How much of the $0.94 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.) S 0.700 0.05F 0.65 U 0.38 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 0.750 0.37 (U 0.38 F 0.30 U 0.08 F $ 0.94 U b) Production for planning budget 9,000 Actual production Planning budget at 90% 10,000 9,000 c) Planning budget revenue $405,000 Sales units Budgeted selling price Budgeted sales revenue 9,000 $45 $405,000 d) Flexible budgeted revenue $450,000 Number of units produced Budgeted selling price Budgeted sales revenue 10,000 $45 $450,000 3) For direct material expenses; a) Calculate the Planning budget" expenses assuming the original production volume (90% of CONNECT) and standards. b) Calculate the flexible budget expense assuming the actual production volume and standards. c) Calculate the actual expenses using actual production volumes and the actual cost per unit information from CONNECT. d) Include this information in the Budget Report appropriately. Perry Company Budget Report Month Ending May 31, 20xx Flexible Variance F/U Budget (2)=(1)-(3) (3) Planning Budget (1) F/U Variance (4)=(3)-(5) Actual Results (5) units Sales Revenue Cost of Goods Sold: DM DL VOH FOH Total COGS DOMITI S&A Expense NOI Amounts are in $ (d) Planning Budget Units = 9,000 Actual Units = 10,000 Flexible Budget units = 10,000 Budgeted selling price = 45 This selling price will be same in all budgets, because it is given that the flexible budget revenue is equal to actual revenue. Also we know flexible budget selling price will be equal to planning budget selling price. Budget Report (Only Revenue part) Planning Variance (2) Flexible Variance (4) Actual Budget (1) = 1-3 budget (3) = 3-5 results (5) 1,000 Units 9,000 10,000 0 10,000 (Favourable) Sales 45,000 405,000 450,000 0 450,000 Revenue (Favourable)