Required information [The following information applies to the questions display

Question

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 (6 Ibs. $5 per Ib.) Direct labor (2 hrs. e $17 per hr.) Overhead (2 hrs. e $18.50 per hr.) Total standard cost 30 34 37 ? 101 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 $ 45,000 180,000 45,000 90,000 $360,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead costs 24,000 80,000 12,000 79,000 195,000 $555,000 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October

Explanation / Answer

Answer 3. Material Actual Cost Standard Cost AQ X AP AQ X SP SQ X SP          91,000 X           5.10          91,000 X           5.00       100,000 X           5.00          464,100          455,000          500,000          9,100        45,000 Direct Material Price Variance          9,100 (U) Direct Material Quantity Variance        45,000 (F) Total Direct Material Variance        35,900 (F) Answer 4. Labor Actual Cost Standard Cost AH X AP AH X SP SH X SP          30,500 X         17.25          30,500 X               17          40,000 X               17          526,125          518,500          680,000          7,625     161,500 Direct Labor Rate Variance          7,625 (U) Direct Labor Efficiency Variance     161,500 (F) Total Direct Labor Variance     153,875 (F) Answer 5. ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected Production Volume      20,000.00 Production Level achieved      20,000.00 Volume Variance                     -   Flexible Budget Actual results Variances Fav. / Unfav. Variable Costs Indirect Materials      45,000.00        44,250.00            750.00 Fav. Indirect Labor    180,000.00     177,750.00        2,250.00 Fav. Power      45,000.00        43,000.00        2,000.00 Fav. Repair & Maintenenace      90,000.00        96,000.00        6,000.00 Unfav. Total Variable Overhead Costs    360,000.00     361,000.00        1,000.00 Unfav. Fixed Overhead Costs Depreciation - Building      24,000.00        24,000.00                     -   Depreciation - Machinery      80,000.00        75,000.00        5,000.00 Fav. Taxes & Insurance      12,000.00        11,500.00            500.00 Fav. Supervision      79,000.00        89,000.00      10,000.00 Unfav. Total Fixed Overhead Costs    195,000.00     199,500.00        4,500.00 Unfav. Total Overhead Costs    555,000.00     560,500.00        5,500.00 Unfav.

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