N Netflix ,\') 201810-Spring 2018-ACCT-21 × y D chapter 10HW x CChegg Study | Gu
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N Netflix ,') 201810-Spring 2018-ACCT-21 × y D chapter 10HW x CChegg Study | Guided Solution x Ashley ? 0 ezto.mheducation.com/hm.tpx ACCOUNTING Managerial Accounting: Spring 2018 ACCT 2122 Chapter 10 HW instructions I help Guestion 2 (of 3) Save & Exit Submit value: 12.00 points 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 Direct materials: 3.60 Standard: 1.80 feet at $2.00 per foot Actual: 1.75 feet at $2.20 per foot S 3.85 Direct labor: 14.40 Standard: 0.90 hours at $16.00 per hour Actual: 0.95 hours at $15.40 per hour 14.63 Variable overhead: 3.60 Standard: 0.90 hours at $4.00 per hour Actual: 0.95 hours at $3.60 per hour 3.42 $21.90 $0.30 Total cost per unit $21.60 Excess of actual cost over standard cost per unit The production superintendent was pleased when he saw this report and commented: "This S0.30 excess cost is well within the 2 percent limit management has set for acceptable variances. It's obvious thalt there's not much to worry about with this product. Actual production for the month was 11,000 units. Varlable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials.Explanation / Answer
1)
1.75[2.2-2]
.35
2[1.75-1.80]
.10
.95[15.40-16]
.57
16[.95-.90]
.80
.95[3.6-4]
.38
4[.95-.90]
.2
2)
Material Price AQ[AR-SR]1.75[2.2-2]
.35
U Quantity SR[AQ-SQ]2[1.75-1.80]
.10
F .25 U Labor Rate AH[AR-SR].95[15.40-16]
.57
F Efficiency SR[AH-SH]16[.95-.90]
.80
U .23 U Variable overhead Rate AH[AR-SR].95[3.6-4]
.38
F Efficiency SR[AH-SH]4[.95-.90]
.2
U .18 F Excess of actual over standard cost per unit .30 URelated Questions
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