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I need help with total overhead costs, budgeted overhead, standard overhead applied, volume variance and total overhead variance. Antuan Company set the following standard costs
I need help with total overhead costs, budgeted overhead, standard overhead applied, volume variance and total overhead variance.
Antuan Company set the following standard costs per unit for its product. Direct materials (6 pounds @ $5 per pound] $ 30 Direct labor (2 hours @ $17 per hour) 34 Overhead (2 hours @ $13.50 per hour) 37 Standard cost per unit $ 131 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. Foilowing are the company's budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity?) Variable overhead costs Indirect materials 5 45,000 Indirect labor 180,000 Power 45,000 Maintenance 98 , 000 Total variable overhead costs 360,000 Fixed overhead costs DepreciationBuilding 24,000 Dep recia tionMachin erg:r 80 , B00 Taxes and insurance 12,000 Supervisory salaries 79,0M Total fixed overhead costs 195,000 Total overhead costs 5 555.3% The company incurred the following actual costs when it operated at 75% ofcapac'rty in October. Direct materials {91,000 pounds @ $5.10 per pound) 5 464,100 Direct labor (30,500 hours Q $17.25 per hour) 526,125 Overhead costs Indirect materials $ 44, 250 Indirect labor 177,750 Power 43,000 Maintenance 96,000 DepreciationBuilding 24,000 Deprecial:ionl\"lachinerg.r 75,000 Taxes and insurance 11,500 Supervisory salaries 39,000 560,500 Total costs $ 1,550,725 4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume 75% of capacity Production level achieved 75% of capacity Volume variance No variance Flexible Budget Actual Results Variances Favorable/Unfavorable Variable overhead costs Indirect materials $ 45,000 $ 44,250 $ (750) Favorable Indirect labor 180,000 177,750 (2,250) Favorable Power 45,000 43,000 2,000 Favorable Maintenance 90,000 96,000 6,000 Unfavorable 360,000 361,000 Fixed overhead costs Depreciation-Building 24,000 24,000 0 No variance Depreciation-Machinery 80,000 75,000 (5,000) Favorable Taxes and insurance 12,000 11,500 500) Favorable Supervisory salaries 79,000 89,000 10,000 Unfavorable Total fixed overhead costs 195,000 199,500 $ (4,500) Unfavorable Total overhead costs Volume Variance Budgeted (flexible) overhead Standard overhead applied Volume variance $ 0 Total overhead varianceStep by Step Solution
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