4. Compute the direct labor cost variance, including its rate and efficiency variances. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate

Actual Cost			0				0	Standard Cost
		0
			$0	0			$0
				$0
				0

Actual Cost			0				0	Standard Cost
		0
			$0	0			$0
				$0
				0

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 (4.0 Ibs. @ $5.00 per Ib.)	$	20.00
Direct labor (1.7 hrs. @ $12.00 per hr.)		20.40
Overhead (1.7 hrs. @ $18.50 per hr.)		31.45
Total standard cost	$	71.85

The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factorys capacity of 20,000 units per month. Following are the companys budgeted overhead costs per month at the 75% capacity level.

Overhead Budget (75% Capacity)
Variable overhead costs
Indirect materials	$	15,000
Indirect labor		90,000
Power		15,000
Repairs and maintenance		30,000
Total variable overhead costs				$	150,000
Fixed overhead costs
DepreciationBuilding		25,000
DepreciationMachinery		71,000
Taxes and insurance		18,000
Supervision		207,750
Total fixed overhead costs					321,750
Total overhead costs				$	471,750

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

Direct materials (61,500 Ibs. @ $5.20 per lb.)				$	319,800
Direct labor (24,000 hrs. @ $12.30 per hr.)					295,200
Overhead costs
Indirect materials	$	41,950
Indirect labor		176,150
Power		17,250
Repairs and maintenance		34,500
DepreciationBuilding		25,000
DepreciationMachinery		95,850
Taxes and insurance		16,200
Supervision		207,750			614,650
Total costs				$	1,229,650

3. Compute the direct materials cost variance, including its price and quantity variances.

AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price

. Prepare a detailed overhead variance report that shows the variances for individual items of overhead.