The following information applies to the questions displayed below.] Antuan Comp

Question

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. $4.00 per Ib.) $12.00 Direct labor (1.6 hrs. 2 $11.00 per hr.) Overhead (1.6 hrs. e $18.50 per hr.) Total standard cost 17.60 29.60 $59.20 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 overheadcosts 15,000 75,000 15,000 30,000 Indirect materials Indirect labor Power Repairs and maintenance Total variable overhead costs $135,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead costs 24,000 72,000 16,000 197,000 309,000 $444,000 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (45,500 Ibs. $4.10 per 1b.) Direct labor (28,000 hrs. e $11.40 per hr.) Overhead costs $ 186,550 319,200 Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision $41,900 176,350 17,250 34,500 24,000 97,200 14,400 197,000 602,600 $1,108,350 Total costs

Explanation / Answer

Actual Cost 4550 2000 Standard Cost AQ x AP AQ x SP SQ x SP 45,500 x 4.1 45,500 x $4.00 45,000 x $4.00 $186,550 $182,000 $180,000 4550 6550 2000 Direct materials price variance 4550 Unfavorable Direct materials quantity variance 2000 Unfavorable Total direct materials variance 6550 Unfavorable 3 Actual Cost 11200 44000 Standard Cost AH x AR AH x SR SH x SR 28,000 x 11.4 28,000 x $11.00 24,000 x $11.00 $319,200 $308,000 $264,000 11200 55200 44000 Direct labor rate variance 11200 Unfavorable Direct labor efficiency variance 44000 Unfavorable Total direct labor variance 55200 Unfavorable

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