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Koontz Company manufactures a number of products. The standards relating to one of these products...

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Accounting

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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 Cost per Actual Cost per Unit Unit Direct materials Standard: 1.80 feet at $2.60 per foot Actual: 1.75 feet at $2.80 per foot $ 4.68 $ 4.9 Direct labor: Standard : .9 hours at $16 . per hour 1440 Actual: .95 hours at $15.4 per hour 14.63 Variable overhead: Standard: .9 hours at $7.4 per hour 6.66 Actual: .95 hours at $7. per hour 6.65 Total cost per unit $25.74 $26.18 Excess of actual cost over standard cost per unit $0.44 The production superintendent was pleased when he saw this report and commented: "This $0.44 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 14,000 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

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