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 (5.0 lbs. @ $5.00 per Ib.) Direct labor (1.6 hrs. @ 512.00 per hr.) Overhead (1.6 hrs. $13.50 per hr.) Total standard cost $25.00 19.20 29.60 $73.80 The predetermined overhead rate ($18.50 per direct labor hout) 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 $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Yotal variable overhead costs $135,000 Fixed overhead costs Depreciation Building 24,000 Depreciation Machinery 72,000 Taxes and insurance 17,000 Supervision 196,000 Total fixed overhead costs 309,000 Total overhead costs $444,000 The company incurred the following actual costs when it operated at 75% of capacity in October $397,00 268,400 Direct materials (76,500 lbs. $5.20 per 16.) Direct labor (22,000 hrs. $12.20 per hr.) Overhead costs Indirect materials Indirect labor Por Hepairs and maintenance Depreciation-building Depreciation Machinery Taxes and insurance Supervision Total cost $ 41,250 176,350 17,250 4,500 24.000 97,200 15,300 196,000 51,260,05 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 cassify all items listed in the foed 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 per Unit Cost capacity capacity capacity Sales (in units) Variable overhead costs 0.00 0 0 0 Fixed overhead costs 0 0 0 0 Total Overhead costs 3. Compute the direct materials cost variance, including its price and quantity vottances (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Actual Cout Standard Cost 0 $ D 4. Compute the direct labor cost variance, induding its rate and officiency wiances indicate the effect of each variance by selecting for favorable, unfavorable, and No variance. Round "Rate per hour answers to two decimal places) Standard Cou Acil Cost 0 ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume variance Variances Fax / Unfav. Flexible Budget Actual Results Variable costs Food costs Total overtad costs
