Question: Need help with the following accounting problem. Problem 23-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1,

Need help with the following accounting problem.

Need help with the following accounting problem. Problem 23-3A Flexible budget preparation;computation of materials, labor, and overhead variances; and overhead variance report LOP1, P2, P3, C2 The following information applies to the questions displayedbelow.] Antuan Company set the following standard costs for one unit ofits product. Direct materials (4.0 Ibs. @ $5.00 per Ib.) Direct labor

Problem 23-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, C2 The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $5.00 per Ib.) Direct labor (1.9 hrs. @ $12.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) Total standard cost $20.00 22.80 35.15 $77.95 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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 75,000 Power 15,000 Repairs and maintenance 45,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 71,000 Taxes and insurance 16,000 Supervision 266,250 Total fixed overhead costs Total overhead costs $150,000 377,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 311,100 231,800 Direct materials (61,000 Ibs. @ $5.10 per lb.) Direct labor (19,000 hrs. @ $12.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,950 176,050 17,250 51,750 24,000 95,850 14,400 266,250 687,500 $1,230,400 Problem 23-3A Part 1&2 Required: 1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Flexible Budget for Variable Amount Total Fixed 65% of 75% of 85% of per Unit Cost capacity capacity capacity Sales (in units) Variable overhead costs Fixed overhead costs Total overhead costs Problem 23-3A Part 3 3. Compute the direct materials cost variance, including its price and quantity variances. Actual Cost Standard Cost Problem 23-3A Part 4 4. Compute the direct labor cost variance, including its rate and efficiency variances. Actual Cost Standard Cost

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