Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please use the same format to fill in the boxes. Thanks Problem -SA Plexible Duager preparations computation of materials, labor, and overhead variances, and overhead
Please use the same format to fill in the boxes. Thanks
Problem -SA Plexible Duager preparations computation of materials, labor, and overhead variances, and overhead variance report LO P1, P2, P3, C2 The following information applies to the questions displayed below) Antuan Company set the following standard costs for one unit of its product 22.80 Direct materials (3.2 lbs. . per tb.) Direct labor (1.9 hrs. $12.ee per hr.) Overhead (1.9 hrs. $18.5e per hr.) Total standard cost 35.15 $69.95 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 75000 Power 15,000 Repairs and maintenance 30.800 Total variable overhead $135,880 costs Fixed overhead costs Depreciation-Building 25,000 Depreciation Machinery 71.000 Taxes and insurance 16,000 Supervision 280, 250 Total Fixed overhead 392.252 costs 527 20 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October $ 195,380 282,9ee Direct materials (46,50e Ibs. $4.20 per lb.) Direct labor (23,eee hrs. $12.3e per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and Insurance Supervision Total costs $ 41,300 176,250 17,250 34,500 25,800 95,850 14,482 200.250 684,880 $1.163,80 Problem 8-3A Part 1&2 Required: 182. Prepare flexible overhead budgets for October showing the amounts of each variable and fed cost at the 65%, 75% and 85% capacity levels and classify all tems listed in the foed budget as variable or fixed ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Flexible Budget for Variable Total 65 of 75% of 85% of Amount per Fixed Cost capacity Unit Fixed cost capacity capacity capacity Sales in units) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance $ Total variable costs Fixed overhead costs Depreciation Building Ferecation Machinery Taxes and insurance Supervision 001 Total foxed costs Total overhead costs Problem 8-3A Part 3 3. Compute the direct materials cost variance, including its price and quantity variances. AQ = Actual Quantity SQ = Standard Quantity APE Actual Price SP Standard Price Actual Cost Standard Cost $ 0 $ Problem 8-3A Part 4 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 Actual Cost Standard Cost Problem 8-3A Part 5 5. 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 Variances Fav. / Unfav. Variable costs Total overhead costsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started