Answered step by step
Verified Expert Solution
Question
1 Approved Answer
8 Homework G Saved Antuan Company set the following standard costs for one unit of its product Direct materials (4.0 Tbs. @ $4.ee per Ib.)
8 Homework G Saved Antuan Company set the following standard costs for one unit of its product Direct materials (4.0 Tbs. @ $4.ee per Ib.) Direct labor (1.9 hrs. @ $14.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) Total standard cost $16.00 26.60 35.15 $77.75 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, een Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 25,800 Depreciation-Machinery 71,000 Taxes and insurance 16,000 Supervision 280,250 Total fixed overhead costs Total overhead costs $135,000 392,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in Octotis $ 254,100 286,000 Direct materials (60,580 Ibs. @ $4.2e per lb.) Direct labor (20,888 hrs. @ $14.30 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 41,100 176,650 17,250 34,500 25,000 95,850 14,400 280,250 685,000 $1,225,100 here to search 3 The company incurred the following actual costs when it operated at 75% of capacity in October $ 254,100 286,000 Direct materials (60.500 tbs @ $4.20 per 1b.) Direct labor (20,800 hrs. @ $14.30 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,100 176,650 17,250 34,500 25,000 95,850 14,400 280, 250 685,000 $1,225,100 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.) Standard Cost Actual Cost 0 $ 0 $ 0 $ 0 0 Next > of 17 15 16 17
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