Antuan Company set the following standard costs for one unit of its product. Direct materials (3.Ibs. @ $5.00 per Ib.) Direct labor (1.7 hrs. @ $10.00 per hr.) Overhead (1.7 hrs. @ $18.50 per hr.) Total standard cost $15.00 17.00 31.45 $63.45 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. 15,000 15,800 Overhead Budget (75% Capaci Variable overhead costs Indirect materials Indirect labor 75,000 Power Repairs and maintenance 30,000 Total variable overhead costs Fixed overhead costs Depreciation Building 24,000 Depreciation Machinery 72,000 Taxes and insurance 17,000 Supervision 223,750 Total fixed overhead costs Total overhead costs $135,000 336.750 $471.750 The company incurred the following actual costs when it operated at 75% of capacity in October $ 241,800 224,400 Direct materials (46,500 Ibs. @ $5.20 per lb.) Direct labor (22,000 hrs. @ $10.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41, 150 176, 100 17,250 34,500 24,000 97,200 15, 300 223,750 629,250 $1,095, 450 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 SQ = Standard Quantity AP = Actual Price SP = Standard Price Actual Cost Standard Cost 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 KWIKEZE KWIKEZE KWIKEZE KWIKEZE COMPANY COMPANY COMPANY COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume Variance Flexible Fav. Actuat Variances Unfav. Budget Results Variable costs Fixed costs Total overhead costs