Antuan Company set the following standard costs per unit for its product Direct materials (5.0 pounds...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Antuan Company set the following standard costs per unit for its product Direct materials (5.0 pounds @ $5.00 per pound) Direct labor (2.0 hours @ $13.00 per hour) Overhead (2.0 hours e $18.50 per hour) $ 25.00 26.00 37.00 Standard cost per unit $ 88.00 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 (75N Capacity) Variable overhead costs Indirect materials Indirect labor Рower 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 30,000 135,000 24,000 71,000 17,000 308, e00 420,000 $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (75,500 pounds e $5.18 per pound) Direct labor (22,000 hours@ s13.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 385, 050 290, 400 $ 41,500 176,600 17,250 34,500 24,000 95,850 15,300 308,000 713,000 $ 1,388,450 4. Prepare a detaled overhead variance report that shows the varlances 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 nces Fixed overhead costs Total overhead oosts Volume Variance Volume variance Total overhead variance Antuan Company set the following standard costs per unit for its product Direct materials (5.0 pounds @ $5.00 per pound) Direct labor (2.0 hours @ $13.00 per hour) Overhead (2.0 hours e $18.50 per hour) $ 25.00 26.00 37.00 Standard cost per unit $ 88.00 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 (75N Capacity) Variable overhead costs Indirect materials Indirect labor Рower 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 30,000 135,000 24,000 71,000 17,000 308, e00 420,000 $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (75,500 pounds e $5.18 per pound) Direct labor (22,000 hours@ s13.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 385, 050 290, 400 $ 41,500 176,600 17,250 34,500 24,000 95,850 15,300 308,000 713,000 $ 1,388,450 4. Prepare a detaled overhead variance report that shows the varlances 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 nces Fixed overhead costs Total overhead oosts Volume Variance Volume variance Total overhead variance
Expert Answer:
Answer rating: 100% (QA)
Antuan company Overhead variance report For the month ended October 31 Expect... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Kryll Company set the following standard costs per unit for its single product. Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80%...
-
Trini Company set the following standard costs per unit for its single product. Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80%...
-
Green Company has set the following standard costs per unit for the product it manufactures. Direct materials (15 Ibs. @ $3.90 per Ib.) . . . . . . $ 58.50 Direct labor (4 hrs. @ $18 per hr.) . . . ....
-
Explain why each of the following statements about profit-maximizing competitive firms is incorrect. Restate each one correctly. a. A competitive firm will produce output up to the point where price...
-
If auditors wish to express a different opinion on prior- years financial statements in the current report than in a previously- issued report, how should their current report be modified?
-
What are the penalties associated with the lack of reporting and remitting payroll taxes? a. Failure to report b. Failure to file c. Failure to deposit d. Failure to remit
-
Evaluate the materiality and audit risk for investing cycle balances.
-
Near the end of 2013, the management of Isle Corp., a merchandising company, prepared the following estimated balance sheet for December 31, 2013. To prepare a master budget for January, February,...
-
How do individual differences in personality traits, such as the Big Five factors, affect team cohesion, communication patterns, and overall organizational effectiveness ?
-
< Exercise 21 Problems-Part I The following questions are based on Figures 21-10, 21-20, and 21-30, radar images of Louisiana from the Fort Polk Doppler radar site taken on October 9, 2020, at about...
-
Toni has recently moved to Norway from New Jersey. Upon arriving, Toni is feeling a bit lost and confused. She also feels a sense of powerlessness. Toni is likely experiencing what intercultural...
-
Boeing Memo | Draft due Wednesday, Sept 21, 11:45pm Read "Boeing 737 Max 8-A Stalled Communication Take-off?" It is late October 2019. The Boeing Board has just stripped Muilenburg of his role as...
-
1) Using the information given below (Trial Balance as of Feb 28), enter the beginning balances in the T- Accounts in the Accounting Records Package. On page 2 note the format of the Financial...
-
Managers often have some latitude in trading off between the variable cost and fixed cost. Provide your suggestion to the manger in deciding which is the best cost structure. (6 marks) (CLO3, PLO5,...
-
01. Find the accumulated amount. P 1,000 5,250 7,235 10,500 300 02. Find the accumulated amount. P 3,500 3,750 1,875 12,500 250 i (simple interest) 0.5% 5% 2.5% 7% 10% i (simple interest) 0.10% 4%...
-
Assume the market is formed of only two securities (a bond fund and a stock fund). Use the following numbers in Excel: E( r ) ( r ) Corr(B,S) Bonds (B): 0.04 0.15 0.10 Stocks (S): 0.11 0.30 Take the...
-
A manufacturer embarking on a Six Sigma program sets the goal of having true Six Sigmacapability for all processes by the end of the month. If their current process capability index on akey metric is...
-
A researcher reports a significant two-way between-subjects ANOVA, F(3, 40) = 2.96. State the decision to retain or reject the null hypothesis for this test.
-
The following information is available for a custom manufacturer. 1. Compute the ending balances of Raw Materials Inventory, Work in Process Inventory, and Finished Goods Inventory. 2. Compute...
-
Refer to the information in Exercise 16-12. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2021. Data From Exercise 16-12 The following financial statements...
-
At the beginning of the year, Custom Mfg. set its predetermined overhead rate using the following estimates: overhead costs, $750,000, and direct materials costs, $625,000. At year-end, the company...
-
Stevenson Company's trial balance as of December 31, 2022 shows \($35,000\) for inventory; but the balance sheet shows \($33,000.\) Assuming no inventory shrinkage, what is the most likely reason for...
-
Amanda Company started business at the beginning of 2022. The company applies the lower-of-cost- or-net-realizable-value rule to its inventory as a whole. Inventory cost and market value as of the...
-
Which one of the following costs is not included in inventory for manufacturing firms? a. Raw materials used in production b. Raw materials unused and stored in the warehouse c. Salary paid to the...
Study smarter with the SolutionInn App