Required information

Skip to question

[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)	$ 20.00
Direct labor (1.7 hours @ $13.00 per hour)	22.10
Overhead (1.7 hours @ $18.50 per hour)	31.45
Standard cost per unit	$ 73.55

The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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
Maintenance	30,000
Total variable overhead costs	135,000
Fixed overhead costs
DepreciationBuilding	24,000
DepreciationMachinery	71,000
Taxes and insurance	16,000
Supervisory salaries	225,750
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 (61,500 pounds @ $5.20 per pound)		$ 319,800
Direct labor (19,000 hours @ $13.20 per hour)		250,800
Overhead costs
Indirect materials	$ 41,450
Indirect labor	176,850
Power	17,250
Maintenance	34,500
DepreciationBuilding	24,000
DepreciationMachinery	95,850
Taxes and insurance	14,400
Supervisory salaries	225,750	630,050
Total costs		$ 1,200,650

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.)

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.) ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume Variance Flexible Budget Actual Results Variances Favorable/Unfavorable Variable overhead costs Fixed overhead costs Total overhead costs Volume Variance Volume variance Total overhead variance