Required information Problem 21-3A Flexible budget preparation; computation of materials, labor, and overhead variances: and overhead variance report LO P1, P2, P3, P4 {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. @ $5.00 per Ib.) Direct labor (2.0 hrs. @ $12.00 per hr.) Overhead (2.0 hrs. $18.50 per hr.) Total standard cost $20.00 24.00 37.00 $81.00 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 (75N Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs Fixed overhead costs Depreciation Building 25,000 Depreciation-Machinery 70,000 Taxes and insurance 16,000 Supervision 309,000 Total fixed overhead costs Total overhead costs 420.000 $555,000 The company incurred the following actual costs when it operated at 75% of capacity in October The company incurred the following actual costs when it operated at 75% of capacity in October $ 314,600 285,200 Direct materials (60,500 Tbs. $5.20 per lb.) Direct labor (23,000 hrs. $12.40 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,700 176.350 17,250 34,500 25,000 94,500 14,400 309,000 712.700 $1,312,500 Problem 21-3A Part 1&2 equired: 32. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, apacity 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 Total Fixed 65% of 75% of 85% of Amount per Unit Cost capacity capacity capacity Sales (in units) Variable overhead costs ya 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 Total Fixed 65% of 75% of 85% of Amount per Unit Cost capacity capacity capacity Sales (in units) Variable overhead costs 0. 000 0 Fixed overhead costs LT1 1 TIT 0000 Total overhead costs 2934 of 4 !! Next > Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs 176,350 17,250 34,500 25,000 94,500 14,400 309,000 712.700 $1,312,500 Problem 21-3A Part 3 3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Actual Cost $ 0 $ 0 Depreciation-building Depreciation Machinery Taxes and insurance Supervision Total costs 25,000 94.500 14,400 309,000 712,700 $1,312,500 Problem 21-3A Part 4 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.) Actual Cost Problem 21-3A Part 5 5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) ANTUAN 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