C D E F G H Use the drop dow 1 Problem 23-3A Antuan Company set the following standard costs for one unit of its product. 1. Examine them and the total cost Ibs/hrs Variabl Direct Materials Direct Labor Overhead Total Standard Cost price per lb/hr price per unit 6 $ 5.00 $ 30.00 2 $ 17.00 $ 34.00 2 $ 18.50 $ 37.00 $ 101.00 Fixed 11 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 12 75% of the factory's capacity of 20,000 units per month. Following are the company's budgeted 13 overhead costs per month at the 75% capacity level. 2. Prepare flexibl cost at the 65%, 15 Variable Overhead Costs 16 Indirect Materials 45,000.00 17 Indirect Labor 180,000.00 18 Power 45,000.00 19 Repairs & Maintenance 90,000.00 20 Total Varaible Overhead Costs 360,000.00 21 Fixed Overhead Costs 22 Depreciation - Building 24,000.00 23 Depreciation - Machinery 80,000.00 24 Taxes & Insurance 12,000.00 25 Supervision 79,000.00 26 Total Fixed Overhead Costs 195,000.00 27 Total Overhead Costs 555,000.00 28 29 The company incurred the following actual costs when it operated at 75% of capacity in October. Problem 22. 2A A G H I 45,000.00 90,000.00 360,000.00 2. Pre costa 18 Power 19 Repairs & Maintenance 20 Total Varaible Overhead Costs 21 Fixed Overhead Costs 22 Depreciation - Building 23 Depreciation - Machinery 24 Taxes & Insurance 25 Supervision 26 Total Fixed Overhead Costs 27 Total Overhead Costs 24,000.00 80,000.00 12,000.00 79,000.00 195,000.00 555,000.00 28 29 The company incurred the following actual costs when it operated at 75% of capacity in October. 464,100.00 526,125.00 31 Direct Materials (91,000 lbs @ $5.10 per lb) 32 Direct Labor (30,500 hrs @ $17.25 per hr) 33 Overhead Costs Indirect Materials 44,250.00 Indirect Labor 177,750.00 Power 43,000.00 Repairs & Maintenance 96,000.00 Depreciation - Building 24,000.00 Depreciation - Machinery 75,000.00 Taxes & Insurance 11,500.00 Supervision 89,000.00 42 Total Costs 3. Con 560,500.00 1,550,725.00 4. Comp Syies ciedl I Styles Number Filter Editing Select Cells 1 N o Use the drop down boxes when necessary and use formulas for cells requiring amounts for answers. . o R 1. Examine the monthly overhead budget to the left and determine the price per unit for each of the listed expenses and the total cost per unit for each variable cost. Then identify the total fixed overhead costs per month. Variable Overhead Costs Price/Unit Fixed Overhead Costs Cost/Monti 2. Prepare flexible overhead budgets (as in Exhibit 23.12) for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. 65% 75% 85% IM No Pa. 3. Compute the direct materials cost variance, including its price and quantity variances. Actual Flexible Standard Formula Total Cost Price Variance Quantity Variance DM Cost Variance 4. Compute the direct labor cost variance, including its rate and efficiency variances. Actual Flexible Standard Formula Total Cost Rate Variance Efficiency Variance DL Cost Variance 3. Compute the direct materials cost variance, including its price and quantity variances. Actual Flexible Standard Formula Total Cost Price Variance Quantity Variance DM Cost Variance 4. Compute the direct labor cost variance, including its rate and efficiency variances. Actual Flexible Standard Formula Total Cost Rate Variance Efficiency Variance DL Cost Variance