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. @ $6.00 per Ib.) Direct labor (1.7 hrs. @ $12.00 per hr.) Overhead (1.7 hrs. @ $18.50 per hr.) Total standard cost $18.00 20.40 31.45 $69.85 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 (754 Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $135,800 Fixed overhead costs Depreciation-Building 23,000 Depreciation Machinery 72,000 Taxes and insurance 17,000 Supervision 224,750 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 $ 280,600 235,600 Direct materials (46,000 lbs. @ $6.10 per tb.) Direct labor (19,000 hrs. @ $12.40 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,800 176,050 17,250 34,500 23,000 97,200 15,300 224,750 629,850 $1,146,050 3. Compute the direct materials cost verlance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance) ol The company incurred the following actual costs when it operated at 75% of capacity in October 123 1200.600 235.600 Direct materins45,000 1.50 per 1.1 Direct labor (19,00 Nr. $12.40 per bris Overhead costs Indirect tens Indirect labor Power Repairs and maintenance Depreciation-iding Depreciation Machinery Taxence Supervision Total cats 41,800 176.ee 17.250 34,500 23.900 91,200 15.30 224,250 629,50 $1,146,50 4. Compute the direct labor cost variance, including its rate and efficiency variances indicate the effect of each variance by selecting for favorable, unfavorable, and No variance. Round "Rate per hour answers to two decimal places) 1 0 d 0 5. Prepare a detailed overhead variance 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
