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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
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 (3.0 Ibs.@ $4.00 per Ib.) Direct labor (1.8 hrs. $10.00 per hr.) Overhead (1.8 hrs. $18.50 per hr.) Total standard cost $12.00 18.00 33.30 $63.30 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 Indirect labor Power Repairs and maintenance Total variable overhead costs 15,000 75,000 15,000 30,000 $135,000 Fixed overhead costs 23,000 71,000 16,000 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead costs 364,500 $499,500 Total overhead costs 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.) Direct labor (22,000 hrs. $10.20 per hr.) Overhead costs S 188,600 224,400 Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision $ 41,950 176,050 17,250 34,500 23,000 95,850 14,400 254,500 657,500 $1,070,500 Total costs 5. Prepare a detalled overhead variance report that shows the variances for Individual items of overhead. ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume variance Fav./ Unfav Flexible Budget Actual ResultsVariances Variable costs Fixed costs Total overhead costs
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