Question
Please help me out! [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its
Please help me out!
[The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product.
Direct materials (4.0 Ibs. @ $6.00 per Ib.) | $ | 24.00 |
Direct labor (1.9 hrs. @ $12.00 per hr.) | 22.80 | |
Overhead (1.9 hrs. @ $18.50 per hr.) | 35.15 | |
Total standard cost | $ | 81.95 |
The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factorys capacity of 20,000 units per month. Following are the companys 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 | ||||
Total variable overhead costs | $ | 135,000 | |||
Fixed overhead costs | |||||
DepreciationBuilding | 23,000 | ||||
DepreciationMachinery | 70,000 | ||||
Taxes and insurance | 16,000 | ||||
Supervision | 283,250 | ||||
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 Ibs. @ $6.10 per lb.) | $ | 372,100 | |||
Direct labor (21,000 hrs. @ $12.20 per hr.) | 256,200 | ||||
Overhead costs | |||||
Indirect materials | $ | 42,000 | |||
Indirect labor | 176,350 | ||||
Power | 17,250 | ||||
Repairs and maintenance | 34,500 | ||||
DepreciationBuilding | 23,000 | ||||
DepreciationMachinery | 94,500 | ||||
Taxes and insurance | 14,400 | ||||
Supervision | 283,250 | 685,250 | |||
Total costs | $ | 1,313,550 | |||
4. Compute the direct labor cost variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance. Round "Rate per hour" answers to two decimal places.)
1 Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the following. Fixed Budget $2,020,000 3 points $230,000 440,000 270,000 30,000 970,000 1,050,000 eBook Sales (10,000 units x $202 per unit) Cost of goods sold Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging Advertising Administrative expenses Administrative salaries Depreciation-office equip. Insurance Office rent 80,000 160,000 100,000 Hint 340,000 O 80,000 50,000 20,000 30,000 Print 180,000 $ 530,000 Income from operations (1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 8,000 units. (4) Compute the income from operations for sales volume of 12,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the income from operations for sales volume of 8,000 units. Income from operations at sales of 8,000 units 1 1 Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the following. Fixed Budget $2,020,000 3 points $230,000 440,000 270,000 30,000 970,000 1,050,000 eBook Selling expenses Sales (10,000 units X $202 per unit) Cost of goods sold Direct materials Direct labor Production supplies Plant manager salary Gross profit Sales commissions Packaging Advertising Administrative expenses Administrative salaries Depreciation-office equip. Insurance Office rent Income from operations 80,000 160,000 100,000 Hint 340,000 80,000 50,000 20,000 30,000 Print 180,000 $ 530,000 (1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 8,000 units. (4) Compute the income from operations for sales volume of 12,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the income from operations for sales volume of 12,000 units. Income from operations at sales of 12,000 unitsStep by Step Solution
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