Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

I need help [The following information applies to the questions displayed below) Antuan Company set the following standard costs for one unit of its product.

I need help

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

[The following information applies to the questions displayed below) Antuan Company set the following standard costs for one unit of its product. Direct materials (30 lbs @ $5.00 per lb.) Direct labor (1.7 hrs. $11.00 per hr.) Overhead (1.7 hrs. @ $18.50 per hr.) $ 15.00 18.70 31.45 Total standard cost $ 65.15 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 $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 $ 135,000 Total variable overhead costs Fixed overhead costs Depreciation--building Depreciation-machinery Taxes and insurance Supervision 23,000 72,000 17,000 224,750 336,750 Total fixed overhead costs $ 471,750 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October $ 239,200 212,800 Direct materials (46,000 lbs. @ $5.20 per lb.) Direct labor (19,000 hrs. @ $11.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-building Depreciation-machinery Taxes and Insurance Supervision $ 41,400 176,950 17,250 34,500 23,000 97,200 15,300 224,750 630,350 Total costs $ 1,082,350 Required: 182. 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 vanable or foxed ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Variable Amount Total Fixed 65% of per Unit Cost capacity Flexible Budget for 75% of capacity 85% of capacity Sales (in units) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance Total variable costs Fixed overhead costs Depreciation Machinery Taxes and insurance Supervision Total fixed costs Total overhead costs 3. Compute the direct materials cost variance, including its price and quantity variances Actual Cost Standard Cost 4. Compute the direct labor cost variance, including its rate and efficiency variances Standard Cost Actual Cost Prepare a detailed overhead variance report that shows the variances for individual items of overhead. 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 Total overhead costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions