Antuan Company set the following standard costs for one unit of its product Direct materials (4 0 Ibs $5 00 per Ib ) $ 20 00 Direct labor (1 7 hrs $12 00 per hr ) 20 40 Overhead (1 7 hrs $18 50 per hr ) 31 45 Total standard cost $ 71 85 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 $ 15,000 Indirect labor 90,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $ 150,000 Fixed overhead costs DepreciationBuilding 25,000 DepreciationMachinery 71,000 Taxes and insurance 18,000 Supervision 207,750 Total fixed overhead costs 321,750 Total overhead costs $ 471,750 The company incurred the following actual costs when it operated at 75 of capacity in October Direct materials (61,500 Ibs $5 20 per lb ) $ 319,800 Direct labor (24,000 hrs $12 30 per hr ) 295,200 Overhead costs Indirect materials $ 41,950 Indirect labor 176,150 Power 17,250 Repairs and maintenance 34,500 DepreciationBuilding 25,000 DepreciationMachinery 95,850 Taxes and insurance 16,200 Supervision 207,750 614,650 Total costs $ 1,229,650 Prepare a detailed overhead variance report that shows the variances for individual items of overhead ANTUAN COMPANY KWIKEZE COMPANY KWIKEZE COMPANY KWIKEZE COMPANY KWIKEZE 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 Problem 23 5A Part 1 2 Required 1 2 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 capacity Flexible Budget for 75 of capacity 85 of capacity per Unit Cost Sales (n units) Variable costs Fixed costs Total overhead costs

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Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $5.00 per Ib.) $ 20.00 Direct labor

Antuan Company set the following standard costs for one unit of its product.


Direct materials (4.0 Ibs. @ $5.00 per Ib.)	$	20.00
Direct labor (1.7 hrs. @ $12.00 per hr.)		20.40
Overhead (1.7 hrs. @ $18.50 per hr.)		31.45
Total standard cost	$	71.85

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	$	15,000
Indirect labor		90,000
Power		15,000
Repairs and maintenance		30,000
Total variable overhead costs			$	150,000
Fixed overhead costs
DepreciationBuilding		25,000
DepreciationMachinery		71,000
Taxes and insurance		18,000
Supervision		207,750
Total fixed overhead costs				321,750
Total overhead costs			$	471,750

The company incurred the following actual costs when it operated at 75% of capacity in October.


Direct materials (61,500 Ibs. @ $5.20 per lb.)			$	319,800
Direct labor (24,000 hrs. @ $12.30 per hr.)				295,200
Overhead costs
Indirect materials	$	41,950
Indirect labor		176,150
Power		17,250
Repairs and maintenance		34,500
DepreciationBuilding		25,000
DepreciationMachinery		95,850
Taxes and insurance		16,200
Supervision		207,750		614,650
Total costs			$	1,229,650

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Prepare a detailed overhead variance report that shows the variances for individual items of overhead.

ANTUAN COMPANY

KWIKEZE 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

Problem 23-5A Part 1&2 Required: 1&2. 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 capacity Flexible Budget for 75% of capacity 85% of capacity per Unit Cost Sales (n units) Variable costs Fixed costs Total overhead costs