please i need help calculating labor efficiency variance and labor rate variance
8) Antuan Company had the following situations during November. Situation A: One of Antuan Company's full-time employees quit. A replacement employee was hired at $14.50 an hour. This employee worked 160 hours during November Situation B: Power outages occurred three times during the month that caused all production to shut down for .75 hours twice and 1.5 hours the third time. During these times, 9 workers remained on site, but no work was performed. Situation C: An order of raw material was received damaged during shipping. The end of the stack of material (all material in the order) was damaged such that 12% of the order was not usable. Based on the standard, the order was expected to produce 2,000 Finished Goods units for the month of November. Situation D: Purchasing was able to negotiate a $4,000 discount for the damaged order from c) above. Consider the four variances for NOVEMBER; Materials Price Variance, Material Quantity Variance, Labor Rate Variance, and Labor Efficiency Variance. Note - You will be ESTIMATING the impact to the variances, calculating a dollar value. There are 3 answers needed for each item. 1 - Name of variance, 2-Unfavorable or Favorable, 3 - Dollar value calculated a) For Situation A, which of the four variances will be affected by the situation? Will it be favorable or unfavorable because of the situation? Estimate how much of the variance will be impacted by the situation. Hint: Use the formula for the specific variance impacted. Determine the "change the situation will have on each element of the formula (actual and standards) and determine the dollar value of the impact. For situation A labor rate variance would be impacted by this situation United States) Focus D. Av Normal No Spacing Heading Heading 2 Labor Rate Variance, and Labor Efficiency Variance. Note - You will be ESTIMATING the impact to the variances, calculating a dollar value. There are 3 answers needed for each item. 1- Name of variance, 2 - Unfavorable or Favorable, 3 - Dollar value calculated a) For Situation A, which of the four variances will be affected by the situation? Will it be favorable or unfavorable because of the situation? Estimate how much of the variance will be impacted by the situation. Hint: Use the formula for the specific variance impacted. Determine the "change the situation will have on each element of the formula (actual and standards) and determine the dollar value of the impact. For situation A, labor rate variance would be impacted by this situation. b) For Situation B, which of the four variances will be affected by the situation? Will the variance be favorable or unfavorable? Estimate the impact to the variance. For situation B, labor efficiency variance would be impacted by this situation. 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 (5.0 Ibs. @ $5.00 per Ib.) Direct labor (1.7 hrs. @ $11.00 per hr.) Overhead (1.7 hrs. @ $18.50 per hr.) Total standard cost $25.00 18.70 31.45 $75.15 The predetermined overhead rate ($18.50 per direct labor hour) is based on an exp factory's capacity of 20,000 units per month. Following are the company's budgete 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs Fixed overhead costs Depreciation Building 24.000 $135,000 iciency variances. (Indicate the effect of each variance by ate per hour" answers to two decimal places.) Standard Cost 1 hours Standard rate Standard hours Standard rate 21,000 X 11.00 25,500 $ 11.00 231,000 280,500 $ 49,500 4,200 49,500 45,300 Unfavorable Favorable Favorable 3. Compute the direct materials cost variance, including its price and quantity variances. (In selecting for favorable, unfavorable, and No variance.) Actual Cost P Actual quantity 76,000 Actual price 5.20 Actual quantity 76,000 $ $ 395,200 $ 380,000 $ 15,200 $ Unfavorable + Direct materials price variance Direct materials quantity variance Total direct materials variance 15,200 5,000 20,200 Unfavorable Unfavorable $1,260,350 d quantity variances. (Indicate the effect of each variance by quantity 76,000 Standard price $ 5.00 Standard quantity 75,000 Standard price 5.00 $ 380,000 Standard Cost X $ $ 375,000 $ 5,000 15,200 5,000 20,200 Unfavorable Unfavorable Unfavorable
