I have been working on a workbook of operating a business. I am on the Variable based from expected to actual. Scenario is highlighted. I am lost on what to do. Can anyone explain and assist? Table 1 - Milestone 1 shows what I expected. Table 2 is the variance table i need help with. The scenario is within the table.

Milestone One - Variable and Fixed Costs
Collars
Item	Variable Cost/Item		Item	Fixed Costs
High-tensile strength nylon webbing	$ 4.00	=12/3	Collar maker's salary (monthly)	$ 2,773.33		=($16*40)*52/12
Polyester/nylon ribbons	$ 3.00	=9/3	Depreciation on sewing machines	$ 55.00		=165/3
Buckles made of cast hardware	$ 2.00	=4*0.5	Rent	$ 250.00		=750/3
Price tags	$ 0.10	From Appendix	Utilities and insurance	$ 200.00		=600/3
			Scissors, thread, and cording	$ 400.00		=1200/3
			Loan payment	$ 183.33		=ROUND(550/3,2)
			Salary to self	$ 166.67		=ROUND(500/3,2)
Total Variable Costs per Collar	$ 9.10	=SUM(B9:B12	Total Fixed Costs	$ 4,028.33
Leashes
Item	Variable Cost/Item		Item	Fixed Costs
High-tensile strength nylon webbing	$ 6.00	=12/2	Leash maker's salary (monthly)	$ 2,773.33		=($16*40)*52/12
Polyester/nylon ribbons	$ 4.50	=9/2	Depreciation on sewing machines	$ 55.00		=165/3
Buckles made of cast hardware	$ 1.50	=3*.50	Rent	$ 250.00		=750/3
Price tags	$ 0.10	From Appendix	Utilities and insurance	$ 200.00		=600/3
			Scissors, thread, and cording	$ 400.00		=1200/3
			Loan payment	$ 183.33		=ROUND(550/3,2)
			Salary to self	$ 166.67		=ROUND(500/3,2)
Total Variable Costs per Leash	$ 12.10	=SUM(B27:30)	Total Fixed Costs	$ 4,028.33		$ 4,028.33
Harnesses
Item	Variable Cost/Item		Item	Fixed Costs
High-tensile strength nylon webbing	$ 6.00	=12/2	Harness maker's salary	$ 2,946.67		=($17*40)*52/12
Polyester/nylon ribbons	$ 4.50	=9/2	Depreciation on sewing machines	$ 55.00		=165/3
Buckles made of cast hardware	$ 4.00	=8*.50	Rent	$ 250.00		=750/3
Price tags	$ 0.10	From Appendix	Utilities and insurance	$ 200.00		=600/3
			Scissors, thread, and cording	$ 400.00		=1200/3
			Loan	$ 183.33		=ROUND(550/3,2)
			Salary to self	$ 166.67		=ROUND(500/3,2)
Total Variable Costs per Harness	$ 14.60	=SUM(B46:B49)	Total Fixed Costs	$ 4,201.67		=SUM(E46:E52)

Milestone Three - Variance Analysis

Variance

Data for Variance Analysis:

At the end of the month, you find that the labor and materials spent on manufacturing collars was different from what you estimated:

Budgeted (Standard) Hours/Qty

Budgeted (Standard) Rate

Actual Hours/Qty

Actual Rate

The collar maker had to work nine hours a day instead of eight due to an increased demand for collars.

Labor

Because of the increased demand, the hourly rate you paid your employee for making the collars increased to $16.50.

An increase in the cost of raw material led the direct material cost per collar to increase to $10.

However, you also made and sold 60 more collars than you expected to sell in the month.

Materials

You now need to determine the variance in the materials and labor cost from what you estimated in Milestone Two based on the market research data.

Variances for Collar Sales

Variance

Favorable/ Unfavorable

Direct Labor Time Variance

(Actual Hours - Standard Hours) x Standard Rate

$ -

Direct Labor Rate Variance

(Actual Rate - Standard Rate) x Actual Hours

$ -

Direct Materials Quantity/Efficiency Variance

(Actual Quantity - Standard Quantity) x Standard Price

$ -

Direct Materials Price Variance

(Actual Price - Standard Price) x Actual Quantity

$ -