Problem 10-13 Basic Variance Analysis; the Impact of Variances on Unit Costs [L010-1, LO10-2, LO10-3) 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 Actual Cost per Unit per Unit Direct materials: Standard: 1.80 feet at $3.00 per foot Actual: 1.80 feet at $3.30 per foot $ 5.46 s 5.94 Direct labor: Standard: 0.90 hours at $18.00 per hour Actual: e.92 hours at $17.50 per hour 16.20 16.10 Variable overhead: Standard: 0.90 hours at $5.00 per hour Actual: 0.92 hours at $4.50 per hour 4.50 4.14 Total cost per unit Excess of actual cost over standard cost per unit $ 26.10 $ 26.18 $0.08 The production superintendent was pleased when he saw this report and commented: "This $0.08 excess cost is well within the 2 percent limit management has set f or acceptable variances. It's obvious that there's not much to worry about with this product." Prev 3 of 3 Next arch