Antuan Company set the following standard costs per unit for its product. $ 20.00 Direct materials...
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Antuan Company set the following standard costs per unit for its product. $ 20.00 Direct materials (4.0 pounds e $5.0e per pound) Direct labor (1.9 hours @ $14.00 per hour) Overhead (1.9 hours @ $18.50 per hour) 26.60 35.15 Standard cost per unit $ 81.75 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 $ 15,000 75,000 15,000 30,000 135,000 Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery 24,000 71,000 17,000 280, 250 392, 250 $ 527,250 Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. $ 317, 200 312,400 Direct materials (61,000 pounds @ $5.20 per pound) Direct ląbor (22,000 hours @ $14.20 per hour) Overhead Indirect materials hests $ 41,500 Indirect labor 176,600 17,250 34,500 24,000 Power Maintenance Depreciation-Building Depreciation-Machinery 95,850 15,300 280, 250 Taxes and insurance Supervisory salaries 685,250 Total costs $ 1,314,850 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.) ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume Variance Flexible Budget Actual Results Variances Favorable/Unfavorable Variable overhead costs Fixed overhead costs Total overhead costs Volume Variance Volume variance Total overhead variance Antuan Company set the following standard costs per unit for its product. $ 20.00 Direct materials (4.0 pounds e $5.0e per pound) Direct labor (1.9 hours @ $14.00 per hour) Overhead (1.9 hours @ $18.50 per hour) 26.60 35.15 Standard cost per unit $ 81.75 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 $ 15,000 75,000 15,000 30,000 135,000 Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery 24,000 71,000 17,000 280, 250 392, 250 $ 527,250 Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. $ 317, 200 312,400 Direct materials (61,000 pounds @ $5.20 per pound) Direct ląbor (22,000 hours @ $14.20 per hour) Overhead Indirect materials hests $ 41,500 Indirect labor 176,600 17,250 34,500 24,000 Power Maintenance Depreciation-Building Depreciation-Machinery 95,850 15,300 280, 250 Taxes and insurance Supervisory salaries 685,250 Total costs $ 1,314,850 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.) ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume Variance Flexible Budget Actual Results Variances Favorable/Unfavorable Variable overhead costs Fixed overhead costs Total overhead costs Volume Variance Volume variance Total overhead variance
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ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume 75 of ... View the full answer
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
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