1) Compute the direct materials variance. including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.)

ework 1 inecumheduca.. Saved Help Save Antuan Company set the following standard costs per unit for its product Direct materials (6 pounds @ $9 per pound) Direet labur (2 hours $17 per hour) Overhead ( hours @ $18.50 per hour) Standard cost per unit $ 30 3d 77 $ 101 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory's capacity of 20.000 units per month Following are the company's budgeted overhead costs per month at the 75% capacity level Overhead Budget (75% Capacity Variable overhead costs Indirect materials Indirect labor Power laintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-lachinery Taxes and insurance Super Isory salaries Total fixed overhead costs Total oerhead costs $ 45,80e 182.ee 45,eee 98. Bee 360,008 24.eee 88, eee 12,000 79.808 195.000 $ 555.00 Prev 1 2 3 4 of 4 Next > a The company incurred the following actual costs when it operated at 75% of capacity in October $ 464,100 526,125 Direct materials (91,000 pounds @ $5.10 per pound) Direct labor (30,500 hours @ $17.25 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 44,250 177,750 43,000 96,000 24,000 75,000 11,500 89,000 560,500 $ 1,550,725 Check my work 2 direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selecting vorable, or no variance.) Part 2014 Standard Cost Actual Cost NU 10 points eBook Print