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Please help calculate the Total Overhead Variance amount. Thank you. Antuan Company set the following standard costs per unit for its product. Direct materials (4.0
Please help calculate the Total Overhead Variance amount. Thank you.
Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $5.00 per pound) $ 20.00 Direct labor (1.9 hours @ $10.00 per hour) 19.00 Overhead (1.9 hours @ $18.50 per hour) 35. 15 Standard cost per unit $ 74. 15 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. Following are the company's budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15,080 Indirect labor 75,000 Power 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building 25,000 Depreciation Machinery 71,909 Taxes and insurance 17,060 Supervisory salaries 279, 250 Total fixed overhead costs 392,250 Total overhead costs $ 527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 pounds @ $5.20 per pound) $ 317, 200 Direct labor (19,000 hours @ $10.30 per hour) 195,780 Overhead costs Indirect materials $ 41, 500 Indirect labor 176, 600 Power 17, 250 Maintenance 34, 500 Depreciation-Building 25,000 Depreciation Machinery 95, 850 Taxes and insurance 15,300 Supervisory salaries 279, 250 685,250 Total costs $ 1,198, 150Step by Step Solution
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