Suncoast Company set the following standard costs for one unit of its product. DM (4.5# at $6 per #) 27 DL (1.5 hrs at $12 per hr) OH (1.5 hrs at $16 per hr) Total standard cost 18 24 69 $ The predetermined OH rate ($16 per DL hr) 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 OH costs per month at the 75% capacity. How many units are 75% of 20,000 capacity? units. How many total hours to produce those units? total hours. Standard Cost 22,500 90,000 22,500 45,000 Variable OH Standard Cost Formula: Variable OH costs Indirect materials Indirect labor Power Repairs & maintenance Total variable OH costs Fixed OH costs Depreciation, building Depreciation, machinery Taxes & insurance Supervision Total fixed OH costs Total OH costs $ 180,000 per hour round to nearest cent $ 24,000 72,000 18,000 66,000 Fixed OH Standard Cost Formula: 180,000 360,000 per hour round to nearest cent The company incurred the following actual costs when it operated at 75% capacity in December. Direct materials (69,000# at $6.10 per #) $ 420,900 Direct labor (22,800 hrs at $12.30 per hr) 280,440 Overhead costs Indirect materials 21,600 Indirect labor 82,260 Power 23,100 Repairs & Maintenance 46,800 173,760 Depreciation, building 24,000 Depreciation, machinery 75,000 Taxes & insurance 16,500 Supervision 66,000 181,500 $ 1,056,600 A) Variable Overhead Variable Overhead Spending and Efficiency Variances Actual Overhead Applied Overhead AH X AVR AVR AH X SVR SH X SVR Spending variance Efficiency variance $ $ Total variable overhead variance $ B) Fixed Overhead Fixed Overhead Spending and Volume Variances Applied Overhead Actual Overhead AFR Budgeted Overhead SH X SFR Spending variance $ Volume variance $ Total fixed OH variance $