Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds...
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Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $11.00 per hour) Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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 Maintenance. Total variable overhead costs Fixed overhead costs. Depreciation-Building Depreciation-Machinery Taxes and insurance. Supervisory salaries Total fixed overhead costs Total overhead costs. Indirect materials Indirect labor Power Maintenance $ 15,000 75,000 15,000 30,000 135,000 Depreciation-Building Depreciation-Machinery. Taxes and insurance Supervisory salaries Total costs $15.00 19.80 33.30 $ 68.10 25,000 71,000 18,000 250,500 364,500 $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,500 pounds @ $5.20 per pound) Direct labor (20,000 hours @ $11.10 per hour) Overhead costs $ 41,550 176,800 17,250 34,500 25,000 95,850 16,200 250,500 $ 241,800 222,000 657,650 $ 1,121,450 ences 4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Expected production volume Production level achieved Volume Variance Variable overhead costs Fixed overhead costs Total overhead costs Volime Varianna ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Flexible Budget Actual Results Variances Favorable/Unfavorable Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $11.00 per hour) Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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 Maintenance. Total variable overhead costs Fixed overhead costs. Depreciation-Building Depreciation-Machinery Taxes and insurance. Supervisory salaries Total fixed overhead costs Total overhead costs. Indirect materials Indirect labor Power Maintenance $ 15,000 75,000 15,000 30,000 135,000 Depreciation-Building Depreciation-Machinery. Taxes and insurance Supervisory salaries Total costs $15.00 19.80 33.30 $ 68.10 25,000 71,000 18,000 250,500 364,500 $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,500 pounds @ $5.20 per pound) Direct labor (20,000 hours @ $11.10 per hour) Overhead costs $ 41,550 176,800 17,250 34,500 25,000 95,850 16,200 250,500 $ 241,800 222,000 657,650 $ 1,121,450 ences 4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Expected production volume Production level achieved Volume Variance Variable overhead costs Fixed overhead costs Total overhead costs Volime Varianna ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Flexible Budget Actual Results Variances Favorable/Unfavorable
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