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Guerre erreurs {The following information applies to the questions displayed below.) Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Tbs. $4.00 per Ib.) Direct labor (1.8 hrs. e $13.00 per hr.) Overhead (1.8 hrs. e $13.50 per hr.) Total standard cost $12.00 23.40 33:30 $68.70 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. $135,000 Overhead Budget 75 Capacity Variable overhead coats Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30.000 Total variable overhead costo Fixed overhead coats Depreciation Building 24,000 Depreciation-Machinery 71,000 Taxes and insurance 16,000 Supervision 253,500 Total fixed overhead costs Total overhead coats 364500 $499.500 4 5 6 7 14 The company incurred the following actual costs when it operated at 75% of capacity in October $ 195,300 277,200 Direct materials (46,500 The $4.20 per 1b.) Direct Labor (21,000 hrs $13.20 per hr.) Overhead costa Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs 5.41,250 176,350 17.250 34,500 24,000 95,850 14,400 253,500 es 657.100 $1,129,600 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 SUMANT Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Variable Amount Total Fixed 65% of Cost capacity per Unit Flexible Budget for 75% of capacity Sales (in units) Variable overhead costs 85% of capacity Fixed overhead costs Total nuerhead once 3. Compute the direct materials cost variance, including its price and quantity variances. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Actual Cost Standard Cost 4. Compute the direct labor cost variance, including its rate and efficiency variances. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Standard Cost Actual Cost ces 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