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.Ibs. @ $4.00 per Ib.) Direct labor (1.7 hrs. $12.00 per hr.) Overhead (1.7 hrs. @ $18.50 per hr.) Total standard cost $12.00 per per Ib.) 7 hrs. as $20.00 20.40 31.45 $71.85 The predetermined overhead rate ($18.50 per direct labor hour is based on an capacity of 20,000 units per month. Following are the company's budgeted over level Overhead Budget (75% Capacity) Variable overhead costs Indirect materiais $ 15.000 Indirect labo 75 000

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

Actual Cost of Material = Actual Quantity x Actual Price

  =76,000 x 4.10

   =$311,600

Standard Quantity= Standard Quantity of Material required for Actual Production

=20,000 x 5=100,000

Standard Material Cost = Standard Quantity x Standard Price

=100,000 x 4

   =$400,000

Material Price Variance=( Standard Price- Actual Price ) x Actual Quantity

   =(4-4.10) x 76,000

   =- $7,600 U

Material Usage(Qty) Variance= (Standard Qty – Actual Qty) x Standard Price

    =(100,000-76,000 ) x 4

   =$96,000 F

Material Cost Variance= Standard Material Cost- Actual Cost of Material

   =$300,000-$311,600

= -$11,600 F