Minh Ngoc Corporation produces containers of Hue food. During April, Minh Ngoc Co. produced (1,481) cases of food and incurred the following actual costs.

Variable overhead	$ 11,000
Fixed overhead	26,000
Actual labor cost (8,000 direct-labor hours)	151,200
Actual material cost (30,000 pounds purchased and used)	66,000

Overhead is budgeted and applied using direct-labor hours in a standard costing system. Standard cost and annual budget information are as follows:

	Standard Costs per Case
Direct labor (5 hours at $18 per hour)	$ 90.00
Direct material (20 pounds at $2 per pound)	40.00
Variable overhead (5 direct-labor hours at $1.50 per hour)	7.50

Fixed overhead (5 direct-labor hours at $3 per hour)	15.00
Total	$152.50
Annual Budget Information
Variable overhead	$150,000
Fixed overhead	$300,000
Planned activity for year	100,000 direct-labor hours

Required:

1. Prepare as complete an analysis of cost variances as is possible from the available data.

2. Show how the solution will change if the following information changes: the standard rates were $17.50 per hour for direct labor, and $1.60 per direct-labor hour for variable overhead.