Check my work Required information Problem 08-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, P4 [The following information applies to the questions displayed below.) Antuan Company set the following standard costs for one unit of its product Direct materials (4.0 Ibs. @ $6.00 per Ib. ) Direct labor (2.0 hrs. $11.00 per hr.) Overhead (2.0 hrs. # $18.50 per hr.) Total standard cost $24.00 22.00 37.00 $83.00 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. overhead Budget (754 Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead conta $135,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 70,000 Taxes and insurance 17,000 Check my work 1.UUU 309,000 Tas nunc Supervision Total fixed overhead costs Total overhead costs 420,000 $555,000 The company incurred the following actual costs when it operated at 75% of capacity in October $ 378,200 235, 200 Direct materiala (61,000 Ibs. $6.20 per lb.) Direct labor (21,000 hrs. $11.20 per hr.) Overhead costa Indirect materials Indirect labor Power Repairs and maintenance Depreciation Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 41,900 176,800 17,250 34,500 24,000 94,500 15,300 309,000 713,250 $1,326, 650 Problem 08-3A Part 4 4. Compute the direct labor cost variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance. Round "Rate per hour" answers to two decimal places.) Problem 08-3A Part 4 4. Compute the direct labor cost variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance. Round "Rate per hour" answers to two decimal places.) Actual Cost $ 0 $ 0 S o 0 ding its rate and efficiency variances. (Indicate the effect of each variance by ariance. Round "Rate per hour" answers to two decimal places.) Standard Cost $ 0 $ 0 $ Oo + Problem 08-3A Part 3 3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Actual Cost 0 $ 0 s 0 $ 0 0 2, including its price and quantity variances. (Indicate the effect of each variance No variance.) Standard Cost 0 $ 0 $ 0 $ 0 0 Problem 08-3A Part 5 5. Prepare a detailed overhead variance report that shows the variances for Individual items of overhead. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) 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 Flexible Budget Actual Results Variances Fav. / Unfav. Variable costs Fixed costs + Total overhead costs
