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the last two questions please Landers Company manufactures a number of products. The standards relating to one of these products are shown below, along with
the last two questions please
Landers 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 Cout Cost per Unit por Unit $ 5.40 $ 5.60 16.20 Direct materials Standard: 1.80 feet at $3.00 per foot Actual: 1.75 feat at $3.20 per foot Direct Labour Standardi 0.90 hours at $18.00 per hour Actualt 0.95 hours at $17.40 per hour Variable overheadt Standard: 0.30 hours at 55.00 per hour Actualt 0.95 hours at $4.60 per hour Total cost per unit Excess of actual cost over standard cont per unit 16.53 4.50 cos $26.10 4.32 $26.50 $0.40 The production superintendent was pleased when he saw this report and commentedThis $0.40 excess cost is well within the 2% Amit 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, Vorlable overhead cost is assigned to products on the basis of direct labour hours. There were no beginning or ending inventories of materials Required: 1. Compute the following variances for May. a. Materials quantity and price variances. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "P" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance.) d Materials quantity variance Materials price variance $ $ 9,000U 2.000 F hoes b. Labour efficiency and rate variances. (Input all amounts as positive values. Leave no cells blank - be certain to enter *o" wherever required. Indicate the effect of each varlance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (le, zero variance.) Labour efficiency variance Labour rate variance $ $ 2.400 BOU c. Variable overhead efficiency and rate variances. (Input all amounts as positive values. Leave no cells blank - be "0" wherever required. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, no effect (i.e., zero variance.) Variable overhead efficiency variance Variable overhead rate variance 500F 400F $ 2. How much of the $0.40 excess unit cost is traceable to each of the variances computed in (1) above. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (ie, zero variance). Round your answers to 2 decimal places.) Materials Quantity variance Price variance Labour Efficiency variance Rate variance Variable overhead Efficiency variance Rate variance Excess of actual over standard cost per unit 3. How much of the $0.40 excess unit cost is traceable to apparent inefficient use of labour time? (Input all amounts as posi values. Leave no cells blank.be certain to enter "0" wherever required. Indicate the effect of each variance by selecting favourable, "U" for unfavourable, and "None" for no effect (ie, zero variance). Do not round intermediate calculations. Re final answers to 2 decimal places.) Excess of actual over standard cost per unit Less portion attributable to labour inefficiency Labour officiency variance Variable overhead efficiency variance Portion due to other variances Step by Step Solution
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