Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $6.00 per pound) Direct labor (1.9 hours
Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $6.00 per pound) Direct labor (1.9 hours @ $12.00 per hour) Overhead (1.9 hours @ $18.50 per hour) Standard cost per unit $ 18.00 22.80 35.15 $ 75.95 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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 Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs $ 15,000 75,000 15,000 30,000 135,000 25,000 72,000 16,000 279,250 392,250 $ 527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,000 pounds @ $6.20 per pound) Direct labor (23,000 hours @ $12.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,550 176,950 17,250 34,500 25,000 97,200 14,400 279,250 $ 285,200 280,600 686,100 $ 1,251,900 2. Compute the direct materials variance, including its price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Actual Cost Standard Cost 3. Compute the direct labor variance, including its rate and efficiency variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to two decimal places. Actual Cost $ 0 $ 0 0 $ 0 Standard Cost Expected production volume Production level achieved Volume Variance ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Variable overhead costs Flexible Budget Actual Results Variances Favorable or Unfavorable Fixed overhead costs Total overhead costs Volume Variance Volume variance Total overhead variance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started