Need help with the four highlighted boxes in question # 4. Thank you.

4) In anticipation of the next period's (November) budget, the company wants to update their standards. Use the information below to adjust update Antuan Company's standards. a) Material price: Management is negotiating an exclusive contract with one of their materials suppliers to insure a lower price. Antuan Company is looking for a price that will reduce the material price variance they saw in October. What price per pound will management want to negotiate? Hint - Use MPV = (SP-AP)AQ: Set material price vanance to 40% of October variance (either in $s or per unit) and sole for Actual Price. This will be the new material price standard for November. Show your work here and include your answers in the summary table below including the highlighted square. Remember to express your answer in terms of per pound of direct material b) The production supervisor is implementing some changes to production that are expected to improve the materials quantity variance. With these changes, the supervisor believes October's unfavorable quantity variance would have only been unfavorable by $1,800. Using MQV= (SQ- AQSP Solve for Actual Quantity to achieve the desired vanance. Express your answers in terms of pounds per unit of finished goods. This will be the new quantity standard for November. Include this in the table below for the highlighted square. c) After identufying the timecard issue, the company has providing additional training for their employees to improve record keeping such that labor time should appropriately be allocated between direct and indirect. The company believes November's production can meet the current labor standard (unchanged from October's hour per unit). What will the standard hour per unit be for November? Include in the highlighted square below. d) The company has increased the wages of its employees by 5% to attempt to provide an incentive and improve moral of the emplovees. This 5% increase is to the "Average Actual labor rate paid in October. Note: Make sure you use the Actual Average using the corrected information from 4 above. This will be the new standard labor rate for November. Calculate the new standard per hour and include it in the highlighted square below. Summary of November Revised Standards Standard Cost per Unit Direct materials Standard: pounds per Pound at Direct labor Standard hours at per hour 5) Variable overhead costs are provided for October assuming 75% capacity. Assume these amounts are the same for November 2) Antuan Company s production capacity is 20.000 units per month. How many units can they produce as 652 25% and 85% capacity. Include these amounts in the sales row for the Flexile Overhead Budgets below. 223,/70 supervision Total fixed overhead costs Total overhead costs 336,750 5471,750 The company incurred the following actual costs when it operated at 75% of capacity in October $ 313,650 257,600 Direct materials (61,500 lbs.55.10 per 1b.) Direct labor (23,000 hrs. $11.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-achinery Taxes and insurance Supervision Total costs $ 41,250 176,200 17,250 34,500 25,000 95,850 15,300 223,750 629,100 $1,200, 350 4. Compute the direct labor cost variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance. Round "Rate per hour" answers to two decimal places.) Actual Cost Actual hours 23,000 Actual rate $ 11.20 Actual hours 23.000 Standard rate $ 11.00 Standard Cost Standard hours 25.500 $ 280.500 Standard rate $ 11.00 $ 257,600 $ 253.000 4600 $ 27.500 Direct labor rate variance Direct labor efficiency variance Total direct labor variance 4.600 Unfavorable 27.500 Favorable 22.900 Favorable $ Explanation 223,750 Supervision Total fixed overhead costs Total overhead costs 336,750 $471,750 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 313,650 257,600 Direct materials (61,580 lbs. 2 $5.10 per 1b.) Direct labor (23,000 hrs. @ $11.20 per hr.) Overhead costs Indirect noterials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-lachinery Taxes and insurance Supervision Total costs $ 41,250 176,200 17,250 34,500 25,000 95,850 15,380 223,750 629,100 $1,200,350 3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Actual quantity X X Actual Cost Actual quantity X Actual price 61,500 X $ $313,650 5.100 61.500 Standard price X $ $307,500 5.000 Standard Cost Standard quantity Standard price 60,000 X $ 5.00 $300,000 7,500 $ 6,150 Direct materials price variance Direct materials quantity variance Total direct materials variance 6,150 Unfavorable 7.500 Unfavorable 13,650 Unfavorable 4) In anticipation of the next period's (November) budget, the company wants to update their standards. Use the information below to adjust update Antuan Company's standards. a) Material price: Management is negotiating an exclusive contract with one of their materials suppliers to insure a lower price. Antuan Company is looking for a price that will reduce the material price variance they saw in October. What price per pound will management want to negotiate? Hint - Use MPV = (SP-AP)AQ: Set material price vanance to 40% of October variance (either in $s or per unit) and sole for Actual Price. This will be the new material price standard for November. Show your work here and include your answers in the summary table below including the highlighted square. Remember to express your answer in terms of per pound of direct material b) The production supervisor is implementing some changes to production that are expected to improve the materials quantity variance. With these changes, the supervisor believes October's unfavorable quantity variance would have only been unfavorable by $1,800. Using MQV= (SQ- AQSP Solve for Actual Quantity to achieve the desired vanance. Express your answers in terms of pounds per unit of finished goods. This will be the new quantity standard for November. Include this in the table below for the highlighted square. c) After identufying the timecard issue, the company has providing additional training for their employees to improve record keeping such that labor time should appropriately be allocated between direct and indirect. The company believes November's production can meet the current labor standard (unchanged from October's hour per unit). What will the standard hour per unit be for November? Include in the highlighted square below. d) The company has increased the wages of its employees by 5% to attempt to provide an incentive and improve moral of the emplovees. This 5% increase is to the "Average Actual labor rate paid in October. Note: Make sure you use the Actual Average using the corrected information from 4 above. This will be the new standard labor rate for November. Calculate the new standard per hour and include it in the highlighted square below. Summary of November Revised Standards Standard Cost per Unit Direct materials Standard: pounds per Pound at Direct labor Standard hours at per hour 5) Variable overhead costs are provided for October assuming 75% capacity. Assume these amounts are the same for November 2) Antuan Company s production capacity is 20.000 units per month. How many units can they produce as 652 25% and 85% capacity. Include these amounts in the sales row for the Flexile Overhead Budgets below. 223,/70 supervision Total fixed overhead costs Total overhead costs 336,750 5471,750 The company incurred the following actual costs when it operated at 75% of capacity in October $ 313,650 257,600 Direct materials (61,500 lbs.55.10 per 1b.) Direct labor (23,000 hrs. $11.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-achinery Taxes and insurance Supervision Total costs $ 41,250 176,200 17,250 34,500 25,000 95,850 15,300 223,750 629,100 $1,200, 350 4. Compute the direct labor cost variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance. Round "Rate per hour" answers to two decimal places.) Actual Cost Actual hours 23,000 Actual rate $ 11.20 Actual hours 23.000 Standard rate $ 11.00 Standard Cost Standard hours 25.500 $ 280.500 Standard rate $ 11.00 $ 257,600 $ 253.000 4600 $ 27.500 Direct labor rate variance Direct labor efficiency variance Total direct labor variance 4.600 Unfavorable 27.500 Favorable 22.900 Favorable $ Explanation 223,750 Supervision Total fixed overhead costs Total overhead costs 336,750 $471,750 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 313,650 257,600 Direct materials (61,580 lbs. 2 $5.10 per 1b.) Direct labor (23,000 hrs. @ $11.20 per hr.) Overhead costs Indirect noterials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-lachinery Taxes and insurance Supervision Total costs $ 41,250 176,200 17,250 34,500 25,000 95,850 15,380 223,750 629,100 $1,200,350 3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Actual quantity X X Actual Cost Actual quantity X Actual price 61,500 X $ $313,650 5.100 61.500 Standard price X $ $307,500 5.000 Standard Cost Standard quantity Standard price 60,000 X $ 5.00 $300,000 7,500 $ 6,150 Direct materials price variance Direct materials quantity variance Total direct materials variance 6,150 Unfavorable 7.500 Unfavorable 13,650 Unfavorable