-08890111351198292 1321847610345 The following information applies to the questi
ID: 2550752 • Letter: #
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-08890111351198292 1321847610345 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 lbs.@$5.00 per lb) $2000 Direct labor (1.9 hrs. @ $11.00 per hr) Overhead (1.9 hrs@$18.50 per hr) 20.90 35.15 Total standard cost $76.05 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 companý'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 s 15,000 75,000 15,000 30,000 D Type here to searchExplanation / Answer
Antuan Company Flexible Overhead Budget For the month Ended October 31 Flexible Budget Flexible Budget for Variable amount/Unit Total Fixed Cost 65% of Capacity 75% of Capacity 85% of Capacity Sales( in Units) $13,000.00 $15,000.00 $17,000.00 Variable Overhead Cost Indirect Material $1.00 $13,000.00 $15,000.00 $17,000.00 Indirect Labour $5.00 $65,000.00 $75,000.00 $85,000.00 Power $1.00 $13,000.00 $15,000.00 $17,000.00 Repair & Maintainance $2.00 $26,000.00 $30,000.00 $34,000.00 Taxes & Insurance Total Variable cost $9.00 $117,000.00 $135,000.00 $153,000.00 Fixed Overhead Cost Depreciation-Building $23,000.00 $23,000.00 $23,000.00 $23,000.00 Depreciation- Machinery $72,000.00 $72,000.00 $72,000.00 $72,000.00 Taxes & Insurance $16,000.00 $16,000.00 $16,000.00 $16,000.00 Supervision $281,250.00 $281,250.00 $281,250.00 $281,250.00 Utilities Total Fixed Cost $392,250.00 $392,250.00 $392,250.00 $392,250.00 Total overhead Cost $509,250.00 $527,250.00 $545,250.00 3. Computation of Direct Material Variance at 75% capacity Actual Cost Standard Cost Actual Quantity 60500 lbs StandaQuantity 60000 Lbs (4lbs*15000Unit) Actual price $5.20 Per Lbs Standard Price $5 Per Lbs TotalActual Cost $314,600.00 Standard Cost $300,000 Direct Material Variance -$14,600.00 Unfavourable Standard Cost- Actual Cost ($300000-$314600) Direct Material Price variance -$12,100.00 Unfavourable (SP-AP)*AQ, ($5-$5.20)60500 Direct Material Quantity variance -$2,500.00 Unfavourable (SQ-AQ)*SP, (60000-60500)$5 4. Computation of Direct Labour Variance at 75% capacity Actual Cost Standard Cost Actual Hours 28000 Hours Standa Hour 28500 Hours (1.9Hour*15000Unit) Actual Rate $11.20 Per Hour Standard Rate $11 Per Hour TotalActual Cost $313,600.00 Standard Cost $313,500 Direct Labour Variance -$100.00 Unfavourable Standard Cost- Actual Cost ($313500-$313600) Direct Labour Rate variance -$5,600.00 Unfavourable (SR-AR)*AH, ($11-$11.20)28000 Direct Labour Efficiency variance $5,500.00 favourable (SH-AH)*SR, (28500-28000)$11
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