Problem 21-3A Flexible budget preparation; 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.

Direct materials (3.0 Ibs. @ $4.00 per Ib.)	$	12.00
Direct labor (1.7 hrs. @ $13.00 per hr.)		22.10
Overhead (1.7 hrs. @ $18.50 per hr.)		31.45
Total standard cost	$	65.55

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		71,000
Taxes and insurance		16,000
Supervision		226,750
Total fixed overhead costs					336,750
Total overhead costs				$	471,750

The company incurred the following actual costs when it operated at 75% of capacity in October.

Direct materials (46,000 Ibs. @ $4.10 per lb.)				$	188,600
Direct labor (28,000 hrs. @ $13.30 per hr.)					372,400
Overhead costs
Indirect materials	$	41,250
Indirect labor		176,800
Power		17,250
Repairs and maintenance		34,500
DepreciationBuilding		23,000
DepreciationMachinery		95,850
Taxes and insurance		14,400
Supervision		226,750			629,800
Total costs				$	1,190,800

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 COMPANY
Flexible Overhead Budgets
For Month Ended October 31
	Flexible Budget		Flexible Budget for
	Variable Amount per Unit	Total Fixed Cost	65% of capacity	75% of capacity	85% of capacity
Sales (in units)
Variable overhead costs
Fixed overhead costs
Total overhead costs

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

Actual Cost								Standard Cost

Part 5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead.

ANTUAN COMPANY

KWIKEZE COMPANY

KWIKEZE COMPANY

KWIKEZE COMPANY

KWIKEZE COMPANY

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

***This is all ONE question that has five parts. Please show all five parts.***