Some of the answers are solved to my knowledge. But, please check my answer for

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Some of the answers are solved to my knowledge. But, please check my answer for 1& 2. Please help me with the rest of the problem, having issues on how to clearly solve this problem.(Question's 3,4 and 5).

Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 lbs. $4.00 per lb.) 16.00 Direct labor (1.9 hrs. $13.00 per hr.) Overhead (1.9 hrs.@ $18.50 per hr.) 24.70 35.15 Total standard cost 75.85 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory's capacity of 20,000 units per month. Following are the company's budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance $ 15,000 75,000 15,000 30,000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation-building Depreciation-machinery Taxes and insurance Supervision 25,000 71,000 16,000 280,250 Total fixed overhead costs 392,250 Total overhead costs $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October.

Explanation / Answer

3. Computation of material cost variance :

Before calculating Material varinace, we need to find some figures, ther are:

Actual quantity (directly given) = 61,500lbs
Actual price = $4.2 per lb
Standard quantity = 20,000units * 4lbs = 80,000lbs
Standard price = $4

Direct Material Price Variance = Actual Cost - Standard Cost of Actual Quantity

= Actual Quantity x Actual Price - Actual Quantity x Standard Price

=61,500 * 4.2 -61,500 * 4 = 61,500(4.2 - 4) = 61,500 *0.2 = 12,300 Unfavorable

Direct Material Usage Variance = Actual Quantity x Standard Price - Standard Quantity x Standard Price

= 61,500 * 4 - 80,000 * 4 = 4 (61,500 - 80,000) = 4 * 18,500 = 74,000 Favorable.

Direct material variance = Actual cost - standard cost

=61500*4.2 - 80,000*4 = 258,300 - 320,000 = 61,700 Favourable

4. Direct labour varaiance:

Before calculating Labour varinace, we need to find some figures, ther are:

Actual hours (directly given) = 29,000
Actual rate = $13.30per hour
Standard hours = 20,000units * 1.9 = 38,000hours
Standard rate = $13

Direct Material Price Va

Direct Labor Rate Variance = Actual hours x Actual Rate - Actual hours x Standard Rate

= 29,000 * 13.30 - 29,000 * 13 = 29,000(13.30 - 13) = 29,000 * 0.30 = 8,700 Unfavorable

Direct Labor Effciency Variance = Actual Hours x Standard Rate - Standard Hours x Standard Rate

= 29,000 * 13 - 38,000 * 13 = 13(29,000-38,000) = 13 * 9,000 = 117,000 Favourable.

Direct Labor Variance = Actual cost - standard cost

=29,000 * 13.30 - 38,000 * 13 = 385,700 - 494,000 = 108,300 Favourable.

5. Detailed overhead variance report:

ANTUAN COMPANY overhead variance report for month ended october31 Expected production volume 20,000 Production level achieved 20,000 Volume variance 0 Flexible budget Actual results Variance Fav / Unfav. Variable cost Indirect Material 15,000 42,000 27,000 Unfavorable Indirect labour 75,000 176,050 101,505 Unfavorable Power 15,000 17,250 2,250 Unfavorable Repair and maintenance 30,000 34,500 4,500 Unfavorable Total variable cost 135,000 269,800 134,800 Unfavorable Fixed cost Depreciation Building 25,000 25,000 0 Depreciation Machinery 71,000 95,850 24,850 Unfavorable Taxes and insurance 16,000 14,400 1,600 favorable Supervision 280,250 280,250 0 Total fixed cost 392,250 415,500 23,250 Unfavorable

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