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 @ $6.00 per pound) Direct labor (1.6 hours @ $13.00 per hour) Overhead (1.6 hours @ $18.50 per hour) Standard cost per unit $ 18.00 20.80 29.60 $ 68.40 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 $ 15,000 75,000 15,000 45,000 150,000 25,000 70,000 16,000 183,000 294,000 $ 444,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 pounds @ $6.20 per pound) Direct labor (23,000 hours @ $13.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,100 177,000 17,250 51,750 25,000 94,500 14,400 183,000 $ 282,100 303,600 604,000 $ 1,189,700 Compute the direct materials variance, including its price and quantity variances. e: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Actual Cost Actual quantity X Actual price X Direct materials price variance Direct materials quantity variance Direct materials variance Standar Actual quantity X Standard price Standard quantity X X X mpute the direct labor variance, including its rate and efficiency variances. : Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to decimal places. Actual Cost Standa Actual hours Actual rate Actual hours X Standard rate Standard hours rect labor variance rect labor efficiency variance rect labor variance X Standard hours Standard Cost Standard rate X 4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Expected production volume Production level achieved Volume Variance ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Flexible Budget Actual Results Variances Favorable or Unfavorable Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs Volume Variance Budgeted (flexible) overhead Standard overhead applied Volume variance Total overhead variance $ 0 Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $6.00 per pound) Direct labor (1.6 hours @ $13.00 per hour) Overhead (1.6 hours @ $18.50 per hour) Standard cost per unit $ 18.00 20.80 29.60 $ 68.40 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 $ 15,000 75,000 15,000 45,000 150,000 25,000 70,000 16,000 183,000 294,000 $ 444,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 pounds @ $6.20 per pound) Direct labor (23,000 hours @ $13.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,100 177,000 17,250 51,750 25,000 94,500 14,400 183,000 $ 282,100 303,600 604,000 $ 1,189,700 Compute the direct materials variance, including its price and quantity variances. e: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Actual Cost Actual quantity X Actual price X Direct materials price variance Direct materials quantity variance Direct materials variance Standar Actual quantity X Standard price Standard quantity X X X mpute the direct labor variance, including its rate and efficiency variances. : Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to decimal places. Actual Cost Standa Actual hours Actual rate Actual hours X Standard rate Standard hours rect labor variance rect labor efficiency variance rect labor variance X Standard hours Standard Cost Standard rate X 4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Expected production volume Production level achieved Volume Variance ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Flexible Budget Actual Results Variances Favorable or Unfavorable Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs Volume Variance Budgeted (flexible) overhead Standard overhead applied Volume variance Total overhead variance $ 0
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