Answered step by step
Verified Expert Solution
Question
1 Approved Answer
4 parts to this one question Antuan Company set the following standard costs per unit for its product. The standard overhead rate ($18.50 per direct
4 parts to this one question
Antuan Company set the following standard costs per unit for its product. 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. The company incurred the following actual costs when it operated at 75% of capacity in October. Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%. 75%, and 85% capacity levels. The company incurred the following actual costs when it operated at 75% of capacity in October. 2. Compute the direct materials variance, including its price and quantity varisnces. (indicate the effect of each variance by selecting favorable, untavorable, or no variance.) 3, Compute the ditect labor varlance, including its rate and efficiency variances. (lindicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to two decimal places.) 7. Prepare a detalled overhead variance report that shows the variances for individual items of overhead. (indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started