4 part problem all using the same data
The following information applies to the questions displayed below Antuan Company set the following standard costs for one unit of its product Direct materials (4.0 Ibs. $5.00 per Ib.) $20.00 Direct labor (1.8 hrs.e$10.00 per hr Overhead (1.8 hrs. $18.50 per hr. Total standard cost 18.00 33.30 $71.30 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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 s 15,000 75,000 Indirect labor Power 15,000 30,00 Repairs and maintenance Total variable overhead costs Fixed overhead costs $135,000 Depreciation-Duilding Depreciation-Machinery Taxes and insurance 25,000 71,000 16,000 252,500 Supervision Total fixed overhead costs 364, 500 $499,500 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Direet materials (61,000 Tba. $5.10 per 1b. ) 311,100 Direct labor (21,000 hrs.$10.20 per hr) Overhead costs Indirect materials 214,200 41.050 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 Ibs. 5.10 per lb.) Direct labor (21,000 hrs. $10.20 per hr) Overhead costs $ 311,100 214,200 41,050 176,050 17,250 34,500 25,000 95,850 14,400 252.500656, 600 Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision $1,181,900 Total costs Required: 1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget for 75% of Flexible Budget 85% of Total Fixed 65% of Variable Amount Sales (in units) Variable overhead costs Indirect materials Indirect labor 182. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget for Flexible Budget 85% of capaci Variable Amount Total Fixed 65% of 75% of ca per Unit Sales (in units) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance 0.00 otal variable costs Fixed overhead costs De achinery Taxes and insurance Total fixed costs Total overhead costs AQ Actual Quantity SQ Standard Quantity AP Actual Price SP = Standard Price Actual Cost Standard Cost AQ AP AQ SP SQ SP Direct materials price variance Direct materials quantity variance Total direct materials variance AH Actual Hours SH Standard Hours AR Actual Rate SR Standard Rate Actual Cost Standard Cost AH AR AH SR SH SR Direct labor rate variance Direct labor efficiency variance Total direct labor variance ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume 75% of capacity 175% of capacity Production level achieved No variance Volume variance Actual Flexible Budget Fav./ Unfav Variances Variable costs Indirect materials Indirect labor Power Repairs and maintenance Total variable costs Fixed costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed costs Total overhead costs KPrev5 of 13E Next >
