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Top of Form [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product.

Top of Form

[The following information applies to the questions displayed below.]

Antuan Company set the following standard costs for one unit of its product.

Direct materials (4.0 Ibs. @ $5.00 per Ib.)

$

20.00

Direct labor (1.6 hrs. @ $13.00 per hr.)

20.80

Overhead (1.6 hrs. @ $18.50 per hr.)

29.60

Total standard cost

$

70.40

The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factorys capacity of 20,000 units per month. Following are the companys 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

Total variable overhead costs

$

135,000

Fixed overhead costs

Depreciationbuilding

23,000

Depreciationmachinery

72,000

Taxes and insurance

18,000

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.

Direct materials (61,000 Ibs. @ $5.10 per lb.)

$

311,100

Direct labor (28,000 hrs. @ $13.40 per hr.)

375,200

Overhead costs

Indirect materials

$

41,950

Indirect labor

176,850

Power

17,250

Repairs and maintenance

34,500

Depreciationbuilding

23,000

Depreciationmachinery

97,200

Taxes and insurance

16,200

Supervision

196,000

602,950

Total costs

$

1,289,250

9.

Required information

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 classify all items listed in the fixed budget as variable or fixed.

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3.

Compute the direct materials cost variance, including its price and quantity variances.

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Required information

4.

Compute the direct labor cost variance, including its rate and efficiency variances.

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12.

Required information

5.

Prepare a detailed overhead variance report that shows the variances for individual items of overhead.

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If you could let me know if I have made any mistakes I would really appreciate it very much.

Thanks

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