all one problem
Antuan Company set the following standard costs for one unit of its product Direct materials (4.0 Ibs. @ $5.00 per Ib.) Direct labor (1.9 hrs. & $12.00 per hr.) Overhead (1.9 hrs. $18.50 per hr.) Total standard cost $20.00 22.80 35.15 $77.95 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 (758 Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 90,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $150,000 Fixed overhead costs Depreciation-Building 23,000 Depreciation-Machinery 71,000 Taxes and insurance 18,000 Supervision 265, 250 Total fixed overhead costs 377,250 Total overhead coats $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,000 lbs. $5.10 per 1b.) Direct labor 20,000 hrs. $12.30 per hr.) $ 311,100 246,000 Required information 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 Flexible Budget for Variable Amount Total Fixed 65% of 75% of 85% of Cost capacity capacity capacity per Unit Sales (in units) Variable overhead costs Fixed overhead costs Total overhead costs Required information [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.) Direct labor (1.9 hrs. . $12.00 per hr.) Overhead (1.9 hrs. $18.50 per hr.) Total standard cont $20.00 22.80 35.15 $77.95 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 (759 Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 90,000 Power 15,000 Repairs and maintenance 30.000 Total variable overhead costs $150,000 Fixed overhead costs Depreciation-Building 23,000 Depreciation-Machinery 71,000 Taxes and insurance 18,000 Supervision 265,250 Total fixed overhead costs 372,250 Total overhead costs $527,250 Required information $ 311,100 246,000 Direct materials (61,000 lbs. $5.10 per lb.) Direct labor (20,000 hrs. $12.30 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costa $ 41,250 176,600 17,250 34,500 23,000 95,850 16,200 265,250 669,900 $1,227,000 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 Stang Required information $ 311,100 246,000 $ 41,250 176,600 17,250 34,500 23,000 95,850 16,200 265,250 669.900 $1,227,000 price and quantity variances. (Indicate the effect of each variance by Standard Cost 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 (751 Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 90,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 23,000 Depreciation-Machinery 71,000 Taxes and insurance 18,000 Supervision 265,250 Total Eixed overhead costs Total overhead costs $150,000 377,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October, $ 311,100 246,000 Direct materials (61,000 lbs. $5.10 per 15.) Direct labor (20,000 hrs. $12.30 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-building Depreciation Machinery Taxes and insurance Supervision Total costo 5.41.250 176,600 17.250 34,500 23,000 95,850 16.200 265,250 662900 $1,227,000 80 information and insurance vision 16,200 265,250 costs 669,900 $1,227,000 direct labor cost variance, including its rate and efficiency variances. (Indicate the effect of each variance by avorable, unfavorable, and No variance. Round "Rate per hour" answers to two decimal places.) Actual Cost Standard Cast + Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 lbs. $5.00 per Ib.) Direct labor (1.9 hrs. $12.00 per hr.) overhead (1.9 hrs. $18.50 per hr.) Total standard cost $20.00 22.80 35.15 $77.95 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 (751 Capacity) Variable overhead coute Indirect materials $ 15,000 Indirect labor 90,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $150,000 Fixed overhead costs Depreciation-Building 23,000 Depreciation-Machinery 71,000 Taxes and insurance 18,000 Supervision 265.250 Total tixed overhead costs 377.250 Total overhead coste $527.250 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials 61,000 lbs. . $5.10 per lb.) Direct labor (20,000 hrs. $12.30 per hr.) 5311.100 246,000 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 311,100 246,000 Direct materials (61,000 lbs. $5.10 per 1b.) Direct labor (20,000 hrs. . $12.30 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 41,250 176,600 17,250 34,500 23,000 95,850 16,200 265,250 669,900 $1,227,000 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 Flexible Budget Actual Results Variances Fav. Unfaw ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume variance Flexible Budget Actual Results Variances Fav. / Unfav. Variable costs Fixed costs Total overhead costs
