Required information Problem 8-3A (Algo) Flexible overhead budget; 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 per unit for its product. Direct materials (4.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $14.00 per hour). Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit $ 20.00 25.20 33.30 $ 78.50 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: Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs. Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs $ 15,000 75,000 15,000 45,000 150,000 23,000 72,000 17,000 237,500 349,500 $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 pounds @$5.28 per pound) Direct labor (21,000 hours $14.20 per hour) Overhead costs Indirect materials Indirect labor $317,200 298,200 $ 41,700 176,150 < Prev 5 of 5 Next > Supervisory salaries Total fixed overhead costs Total overhead costs 237,500 349,500 $ 499,500 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) Direct labor (21,000 hours @ $14.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $317,200 298,200 $ 41,700 176,150 17,250 51,750 23,000 97,200 15,300 237,500 659,850 $1,275,250 Problem 8-3A (Algo) Part 4 4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Expected production volume Production level achieved Volume Variance Variable overhead costs ANTUAN COMPANY Overhead Variance Report. For Month Ended October 31 Flexible Budget Actual Results Variances Favorable Unfavorable Help of 3 Required information Expected production volume Production level achieved ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Volume Variance Flexible Budget Actual Results Variances Favorable/Unfavorable Variable overhead costs Book Print eferences Fixed overhead costs Mc Graw Total overhead costs Volume Variance Volume variance Total overhead variance $ < Prev 5 of 5 Next >