Question

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 Unit Actual Cost per Unit $ 8.74 $ 9.25 18.05 18.50 Direct materials: Standard: 1.90 feet at $4.60 per foot Actual: 1.85 feet at $5.00 per foot Direct labor: Standard: 0.95 hours at $19.00 per hour Actual: 1.00 hours at $18.50 per hour Variable overhead: Standard: 0.95 hours at $7.00 per hour Actual: 1.00 hours at $6.60 per hour Total cost per unit Excess of actual cost over standard cost per unit 6.65 6.60 $ 33.44 $34.35 $0.91 The production superintendent was pleased when he saw this report and commented: “This $0.91 excess cost is well within the 4 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 19,000 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials.

Answer 1

SQ 4.60 Per foot 1.9 feet 36100 feet 19000 Units 35150 feet 35150 feet 5.00 Per foot SR Data Direct Material Standard Price SP Standard quantity Per unit Standard Quantity for Actual Output Actual Output Actual Quantity Purchased AQP Actual Quanity Used AQ Actual Price of Material АР | Direct Labor Standard Rate Standard hours per unit Standard Hours for Actual output SH Actual Output Actual hours Worked AH Actual Rate Varaible OH Standard Rate SR Standard hours per unit Standard Hours for Actual output SH Actual Output Actual hours Worked AH Actual rate AR 19 Per hour 0.95 hours 18050 Hours 19000 Units 19000 hours 18.50 Per hour AR 7.00 Per hour 0.95 hours 18050 Hours 19000 Units 19000 hours 6.60 Per hour

Answer 14060 U 4370F 9500 F Mateial Price Variance (AQ*AP)-(AQ*SP) Matrial Quanity Varaince (AQ*SP)-(SQ*SP) Labor rate Variance (AH*AR)-(AH*SR) labor Efficiency Varaince (AH*SR)-(SH*SR) Overhead Rate Variance (AH*AR)-(AH*SR) Overhead Efficiency Varaince (AH*SR)-(SH*SR) 18050 U 7600 F 6650 U