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Standard Cost per Unit						Actual Cost per Unit
Direct materials:
Standard: 1.80 feet at $2.60 per foot	$	4.68
Actual: 1.75 feet at $2.80 per foot							$	4.90
Direct labor:
Standard: 0.90 hours at $16.00 per hour		14.40
Actual: 0.95 hours at $15.40 per hour								14.63
Variable overhead:
Standard: 0.90 hours at $7.40 per hour		6.66
Actual: 0.95 hours at $7.00 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:

	1a. Materials price variance Materials quantity variance 1b. Labor rate variance Labor efficiency variance 1c. Variable overhead rate variance Variable overhead efficiency variance

2. How much of the $0.44 excess unit cost is traceable to each of the variances computed in (1) above.

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