Antuan Company set the following standard costs for one unit of its product Direct materials (3.0 lbs. 56.00 per Ib.) Direct labor (1.7 hrs. $13.00 per hr.) Overhead (1.7 hrs. $13.50 per hr.) Total standard cost $18.00 22.10 31.45 $71.55 The predetermined overhead rate (518.50 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 Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 71,00 Taxes and insurance 18,000 Supervision 223.2 Total Fixed overhead costs Total overhead costs $135,000 336, 250 5471,750 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (46,58 Ibs.55.10 per 1b.) Direct labor (23,600 hrs. 513.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Hachinery Taxes and insurance Supervision Total costs $ 41,700 176,ese 17,25 34,500 95.650 16,00 223.250 51,216.550 Problem 8-3A Part 3 3. Compute the direct materials cost variance, including its price and quantity variances AQ = Actual Quantity SQ - Standard Quantity AP = Actual Price SP - Standard Price Actual Cost Standard Cost 0 $ $ Antuan Company set the following standard costs for one unit of its product Direct materials (3.0 lbs. 56.00 per Ib.) Direct labor (1.7 hrs. $13.00 per hr.) Overhead (1.7 hrs. $13.50 per hr.) Total standard cost $18.00 22.10 31.45 $71.55 The predetermined overhead rate (518.50 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 Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 71,00 Taxes and insurance 18,000 Supervision 223.2 Total Fixed overhead costs Total overhead costs $135,000 336, 250 5471,750 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (46,58 Ibs.55.10 per 1b.) Direct labor (23,600 hrs. 513.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Hachinery Taxes and insurance Supervision Total costs $ 41,700 176,ese 17,25 34,500 95.650 16,00 223.250 51,216.550 Problem 8-3A Part 3 3. Compute the direct materials cost variance, including its price and quantity variances AQ = Actual Quantity SQ - Standard Quantity AP = Actual Price SP - Standard Price Actual Cost Standard Cost 0 $ $
