Required Information [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. Ibs. @ $5.00 per Ib.) Direct labor (1.7 hrs. @ $13.68 per hr.) Overhead (1.7 hrs. @ $18.50 per hr.) Total standard cost $29.98 22.10 31.45 $73.55 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,eee Indirect labor 75,000 Power 15,980 Repairs and maintenance 3e,eee Total variable overhead costs Fixed overhead costs Depreciation-Building 25, eee Depreciation Machinery 71,00 Taxes and insurance 18,080 Supervision 222,750 Total fixed overhead costs Total overhead costs $135,000 336,758 $471,750 The company incurred the following actual costs when it operated at 75% of capacity in October. $314,6ee 308, 200 Direct materials (60,580 lbs. @ $5.20 per 1b.) Direct labor (23,800 hrs. @ $13.40 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,380 176,989 17,250 34,500 25,000 95,850 16,280 222,750 629,750 $1,252,55 Required: 182. 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 Total Fixed 65% of 75% of 85% of Cost capacity capacity capacity per Unit Sales (in units) Variable overhead costs Fixed overhead costs Total overhead costs 3. Compute the direct materials cost variance, including its price and quantity varlances. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and No variance.) Actual Cost Standard Cost 0 $ 0 $ 0 $ 4. Compute the direct labor cost variance, including its rate and efficiency variances. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and No varlance. Round "Rate per hour" answers to two decimal places.) Actual Cost Standard Cost 5. Prepare a detailed overhead varlance 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
