Instructions I help Chapter 21 Homework Problem 21-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, C2 [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. $ 15.00 Direct materials (3.0 lbs. @ $5.00 per lb.) Direct labor (2.0 hrs. @ $14.00 per hr.) Overhead (2.0 hrs. $18.50 per hr.) 28.00 37,00 Total standard cost $ 80.00 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 (75% Capacity) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance Total variable overhead costs Fixed overhead costs Depreciation-building Depreciation-machinery Taxes and insurance Supervision Total fixed overhead costs Total overhead costs $ 15,000 75,000 15,000 30,000 23,000 72,000 17,000 308,000 $ 135,000 420,000 $555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,000 lbs. @ $5.10 per lb.) Direct labor (29,000 hrs. @ $14.30 per hr.) Overhead costs $ 234,600 414,700 Indirect materials $ 41,050 Indirect labor Power 176,800 17,250 34,500 23,000 Repairs and maintenance Depreciation-building Depreciation-machinery Taxes and insurance Supervision 97,200 15,300 308,000 713,100 Total costs $ 1,362,400 References 1 8. Problem 21-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead varlance report LO P1, P2, P3, C2 value: 0.35 points Problem 21-3A 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 Flexible Budget for 75% of Variable Amount Total Fixed per Unit Cost capacity Sales (in units) Variable overhead costs $ 0.00 Fixed overhead costs Total overhead costs Section Break 0 65% of capacity 0 0 0 0 Required Information 85% of capacity 0 0 9. value: 0.35 points Problem 21-3A Part 3 3. Compute the direct materials cost variance, including its price and quantity variances. Actual Cost 0 $ 0 0 0 Required Information Standard Cost Problem 21-3A Part 4 4. Compute the direct labor cost variance, including its rate and efficiency variances. Actual Cost 0 eBook & Resources. 0 $ 0 0 References Expanded table Learning Objective: 21-C2 Describe cost variances and what they reveal about performance. Problem 21-3A Part 4 Learning Objective: 21-P1 Prepare a flexible budget and interpret a flexible budget performance report. Difficulty: 3 Hard Learning Objective: 21-P2 Compute materials and labor variances. O Standard Cost 0$ 0 Learning Objective: 21-P3 Compute overhead controllable and volume variances. Expected production volume Production level achieved Volume variance Variable costs Fixed costs Total overhead costs Chapter 21 Homework ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Flexible Budget Actual Results Variances Fav. / Unfav. Problem 21-4A Computation of materials, labor, and overhead variances LO P2, P3 [The following information applies to the questions displayed below.] Trico Company set the following standard unit costs for its single product. $112.00 Direct materials (28 lbs. @ $4 per lb.) Direct labor (8 hrs. @ $8 per hr.) 64.00 40.00 Factory overhead-variable (8 hrs. @ $5 per hr.) Factory overhead-fixed (8 hrs. @ $7 per hr.) 56.00 Total standard cost $ 272.00 The predetermined overhead rate is based on a planned operating volume of 60% of the productive capacity of 60,000 units per quarter. The following flexible budget information is available. Operating Levels 50% 60% 36,000 70% 42,000 30,000 Production in units Standard direct labor hours Budgeted overhead 240,000 288,000 336,000 Fixed factory overhead Variable factory overhead $ 2,016,000 $2,016,000 $2,016,000 $ 1,200,000 $1,440,000 $1,680,000 During the current quarter, the company operated at 70% of capacity and produced 42,000 units of product; actual direct labor totaled 331,000 hours. Units produced were assigned the following standard costs: Direct materials (1,176,000 lbs. @ $4 per lb.) Direct labor (336,000 hrs. @ $8 per hr.) $4,704,000 2,688,000 4,032,000 Factory overhead (336,000 hrs. $12 per hr.) Total standard cost $ 11,424,000 Actual costs incurred during the current quarter follow: $ Direct materials (1,171,000 lbs. @ $4.10 per lb.) Direct labor (331,000 hrs. @ $7.75 per hr.) Fixed factory overhead costs Variable factory overhead costs 4,801,100 2,565,250 2,935,283 2,747,925 Total actual costs $ 13,049,558 value: 0.35 points Problem 21-4A Part 1 Required: 1. Compute the direct materials cost variance, including its price and quantity variances. Actual Cost 0 0 0 0 0 0 Required Information Standard Cost AH Actual Cost X 0 Chapter 21 Homework 0 0 0 Standard Cost Controllable Variance Actual overhead Budgeted overhead Controllable variance Budgeted fixed overhead Fixed overhead cost applied Fixed overhead volume variance Fixed overhead volume variance Chapter 21 Homework