Standard Cost

Actual Cost

per Unit

per Unit

Direct materials:

Standard: $1\mathrm{.}80$ feet at $$3\mathrm{.}00$ per foot

$$5\mathrm{.}40$

Actual: $1\mathrm{.}80$ feet at $$3\mathrm{.}30$ per foot

Direct labor:

Standard: $0\mathrm{.}90$ hours at $$18\mathrm{.}00$ per hour

Actual: $0\mathrm{.}92$ hours at $$17\mathrm{.}50$ per hour

$16\mathrm{.}20$

Variable overhead:

Standard: $0\mathrm{.}90$ hours at $$5\mathrm{.}00$ per hour

Actual: $0\mathrm{.}92$ hours at $$4\mathrm{.}50$ per hour

Total cost per unit

Excess of actual cost over standard cost per unit

$$5\mathrm{.}94$

The production superintendent was pleased when he saw this report and commented: "This $$0\mathrm{.}08$ excess cost is well

within the $2$ 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 $12,000$ 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:

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.

How much of the $$0\mathrm{.}08$ excess unit cost is traceable to each of the variances computed in requirement $1.$

How much of the $$0\mathrm{.}08$ excess unit cost is traceable to apparent inefficient use of labor time?

Complete this question by entering your answers in the tabs below.

How much of the $$0\mathrm{.}08$ excess unit cost is traceable to each of the variances computed in requirement $1.$

Note: Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$

zero variance$).$ Input all amounts as positive values. Round your answers to $2$ decimal places.