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Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. @ $6.00 per Ib.) $ 18.00 Direct labor

Antuan Company set the following standard costs for one unit of its product.
Direct materials (3.0 Ibs. @ $6.00 per Ib.) $ 18.00
Direct labor (1.6 hrs. @ $14.00 per hr.) 22.40
Overhead (1.6 hrs. @ $18.50 per hr.) 29.60
Total standard cost $ 70.00
The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factorys capacity of 20,000 units per month. Following are the companys budgeted overhead costs per month at the 75% capacity level.
Overhead Budget (75% Capacity)
Variable overhead costs
Indirect materials $ 30,000
Indirect labor 75,000
Power
30,000
Repairs and maintenance 30,000
Total variable overhead costs $ 165,000
Fixed overhead costs
DepreciationBuilding 24,000
DepreciationMachinery 71,000
Taxes and insurance 17,000
Supervision 167,000
Total fixed overhead costs 279,000
Total overhead costs $ 444,000
The company incurred the following actual costs when it operated at 75% of capacity in October.
Direct materials (46,000 Ibs. @ $6.20 per lb.) $ 285,200
Direct labor (23,000 hrs. @ $14.20 per hr.) 326,600
Overhead costs
Indirect materials $ 41,850
Indirect labor 176,150
Power 34,500
Repairs and maintenance 34,500
DepreciationBuilding 24,000
DepreciationMachinery 95,850
Taxes and insurance 15,300
Supervision 167,000 589,150
Total costs $ 1,200,950
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Required: 182. 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. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Variable Amount Total Fixed 65% of per Unit Cost capacity Flexible Budget for 75% of capacity 85% of capacity i Sales (in units) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance / / $ 0.00 Fixed overhead costs Total overhead costs 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 4. Compute the direct labor cost variance, including its rate and efficiency variances. AH = Actual Hours SH - Standard Hours AR = Actual Rate SR = Standard Rate Actual Cost Standard Cost 5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. 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 | US

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