Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds...
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Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $13.00 per hour) Overhead (1.8 hours @ $18.50 per hour) $ 20.00 23.40 33.30 Standard cost per unit $ 76.70 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 Indirect labor 90,000 Power 15,000 Maintenance 30,000 150,000 Total variable overhead costs Fixed overhead costs 24,000 Depreciation-Building Depreciation-Machinery Taxes and insurance 72,000 17,000 Supervisory salaries 236,500 Total fixed overhead costs 349,500 Total overhead costs $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 pounds @ $5.10 per pound) $ 311,100 252,700 Direct labor (19,000 hours @ $13.30 per hour) Overhead costs $ 41,150 Indirect materials Indirect labor 176,250 Power 17,250 Maintenance 34,500 Depreciation-Building 24,000 97,200 Depreciation-Machinery Taxes and insurance Supervisory salaries 15,300 236,500 642,150 Total costs $ 1,205,950 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. Direct materials (4.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $13.00 per hour) Overhead (1.8 hours @ $18.50 per hour) $ 20.00 23.40 33.30 Standard cost per unit $ 76.70 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 Indirect labor 90,000 Power 15,000 Maintenance 30,000 150,000 Total variable overhead costs Fixed overhead costs 24,000 Depreciation-Building Depreciation-Machinery Taxes and insurance 72,000 17,000 Supervisory salaries 236,500 Total fixed overhead costs 349,500 Total overhead costs $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 pounds @ $5.10 per pound) $ 311,100 252,700 Direct labor (19,000 hours @ $13.30 per hour) Overhead costs $ 41,150 Indirect materials Indirect labor 176,250 Power 17,250 Maintenance 34,500 Depreciation-Building 24,000 97,200 Depreciation-Machinery Taxes and insurance Supervisory salaries 15,300 236,500 642,150 Total costs $ 1,205,950 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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Units produced 65 13000 2000065 75 15000 2000075 85 17000 2000085 ANTUAN COMPANY ... 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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