Question

Required information [The following information applies to the questions displayed below! Antuan Company set the following standard costs for one unit of its product Direct materials (5.2 Tbs. $4.00 per Ib.) Direct labor (1.7 hrs. $12.80 per hr.) Overhead (1.7 hrs. $18.50 per hr.) Total standard cost $20.00 20.40 31.45 $71.85 The predetermined overhead rate ($18.50 per direct labor hour is based on a capacity of 20.000 units per month. Following are the company s budgeted overne level Overhead Budget (755 Capacity) Variable werhead costs Indirect aterials $ 15,000 Indirect labor 15.000

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.

The company incurred the following actual costs when it operated at
75% of capacity in October.

please help

Answer 1

Compute the direct labor cost variance, including its rate and efficiency variances.
	Actual Cost					Standard Cost
AH	x	AR	AH	x	SR	SH	x	SR
23,000	x	$12.40	23,000	x	$12.00	17,250	x	$12.00
	$285,200			$276,000			$207,000
		$9,200				$69,000
*SH = 23000 x 75%
Direct labor rate variance	$9,200	Unfavorable
Direct labor efficiency variance	69,000	Unfavorable
Total direct labor variance	$78,200	Unfavorable