8 4 Part 1 of 4 points Skipped eBook Required information Problem 08-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. $5.00 per Ib.) Direct labor (1.9 hrs. $11.00 per hr.) Overhead (1.9 hrs. $18.50 per hr.) Total standard cost $15.00 20.90 35.15 $71.05 Print References 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 $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $135,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 72,000 Taxes and insurance 17,000 Supervision 279,250 Total fixed overhead costs Total overhead costs 392,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. $5.10 per lb.) $11.30 per hr.) Direct materials (45,500 Ibs. Direct labor (20,000 hrs. Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 41,900 176,050 17,250 $ 232,050 226,000 34,500 24,000 97,200 15,300 279,250 685,450 $1,143,500 Problem 08-3A Part 1&2 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. Sales (in units) Variable overhead costs ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Variable Amount Total Fixed per Unit Cost Flexible Budget for 65% of capacity 75% of 85% of capacity capacity $ 0.00 0 0 0 Fixed overhead costs 0 0 0 0 Total overhead costs 9 4 Part 2 of 4 points Skipped Required information Problem 08-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. eBook Direct materials (3.0 Ibs. @ $5.00 per Ib.) Direct labor (1.9 hrs. $11.00 per hr.) Overhead (1.9 hrs. $18.50 per hr.) Total standard cost $15.00 20.90 35.15 $71.05 Print References 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 Indirect labor Power Repairs and maintenance Total variable overhead costs $ 15,000 75,000 15,000 30,000 $135,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 72,000 Taxes and insurance 17,000 Supervision 279,250 Total fixed overhead costs Total overhead costs 392,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 Ibs. Direct labor (20,000 hrs. Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $5.10 per lb.) $11.30 per hr.) $ 232,050 226,000 $ 41,900 176,050 17,250 34,500 24,000 97,200 15,300 279,250 685,450 $1,143,500 Problem 08-3A Part 3 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 Cost 0 $ 0 $ 0 0 0 Standard Cost 10 4 Part 3 of 4 points Skipped Required information Problem 08-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. eBook Direct materials (3.0 Ibs. @ $5.00 per Ib.) Direct labor (1.9 hrs. $11.00 per hr.) Overhead (1.9 hrs. $18.50 per hr.) Total standard cost $15.00 20.90 35.15 $71.05 Print References 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 Indirect labor Power $ 15,000 75,000 15,000 Repairs and maintenance Total variable overhead costs 30,000 $135,000 Fixed overhead costs. Depreciation-Building 24,000 Depreciation Machinery 72,000 Taxes and insurance 17,000 Supervision 279,250 Total fixed overhead costs Total overhead costs 392,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 Ibs. Direct labor (20,000 hrs. Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $5.10 per lb.) $11.30 per hr.) $ 232,050 226,000 $ 41,900 176,050 17,250 34,500 24,000 97,200 15,300 279,250 685,450 $1,143,500 Problem 08-3A Part 4 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 $ 0 $ 0 0 0 Standard Cost 11 Part 4 of 4 4 points eBook Required information Problem 08-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. $5.00 per Ib.) Direct labor (1.9 hrs. $11.00 per hr.) Overhead (1.9 hrs. $18.50 per hr.) Total standard cost $15.00 20.90 35.15 $71.05 Print References 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 $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $135,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 72,000 Taxes and insurance 17,000 Supervision 279,250 Total fixed overhead costs Total overhead costs 392,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 Ibs. Direct labor (20,000 hrs. Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $5.10 per lb.) $11.30 per hr.) $ 232,050 226,000 $ 41,900 176,050 17,250 34,500 24,000 97,200 15,300 279,250 685,450 $1,143,500 Problem 08-3A Part 5 5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume variance Variable costs Fixed costs Total overhead costs Flexible Budget Actual Results Variances Fav./ Unfav