Required information [The following information applies to the questions display

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Required information [The following information applies to the questions displayed belowj Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. $6.00 per Ib.) Direct labor (1.7 hrs. $10.00 per hr.) Overhead (1.7 hrs. $18.50 per hr.) Total standard cost $24.00 17.00 31.45 $72.45 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 $ 15,000 75,000 15,000 30,000 $135,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and Supervision Total fixed overhead costs 24,000 71,000 16,000 225,750 insurance Total overhead costs $471,750 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 Ibs. @ $6.10 per lb.) Direct labor (19,000 hrs.$10.40 per hr.) Overhead costs $ 372,100 197,600 Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision $ 41,700o 176,100 17,250 34,500 24,000 95,850 14,400 225,750 629,550 $1,199,250 Total costs

Explanation / Answer

Antuan Company Overhead Variance Report Expected production volume 75% of capacity production level achieved 75% of capacity Volume variance No variance Flexible Actual Variances Fav/unfav budget results Variable Costs Indirect materials 15,000 41,700 26,700 U Indirect labor 75,000 176,100 101,100 U Power 15,000 17,250 2,250 U Repairs & Maintenance 30,000 34,500 4,500 U total variable costs 135,000 269,550 134,550 U Fixed costs Depreciation-Building 24,000 24,000 0 N Depreciation-Machinery 71,000 95,850 24,850 U Taxes and insurance 16,000 14,400 1,600 F Supervision 225,750 225,750 0 N total fixed costs 336,750 360,000 23,250 U total overhead costs 471,750 629,550 157,800 U

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