overhead rate ($18.50 per direct labor hour) is based on an expected volume o acity of 20.000 units per month. Following are the company's budgeted overhe at the 75% capacity level f 75% of ad costs Overhead Budget (75% Capacity) Variable overhead costs Indirect materials Indirect labor.... 45,000 180,000 45,000 Repairs and maintenance... Total variable overhead costs $360,000 Fixed overhead costs Depreciation-Building 24,000 80,000 12,000 Taxes and insurance 19000 195.000 Total foxed overhead costs Total overhead costs 555,000 econ any incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (91,000 lbs. $5.10 per lb.). Direct labor (30,500 hrs. $17.25 per hr.) Overhead costs s 464,100 526,125 Indirect materials Indirect labor Power Repairs and maintenance... Depreciation-Building.. Depreciation-Machinery Taxes and insurance Supervision. s 44,250 177,750 43,000 96,000 24,000 75,000 11,500 9000560.500 Total costs Required the monthly overhead budget to (a) determine the costs per unit for each variable overhead its total per unit costs and (b) identify the total fixed costs per month. exible overhead budgets (as in Exhibit 21.12) for October showi ing the amounts of each vari- and fixed cost at the 65%,75%, and 85% capacity levels. the direct materials cost variance, including its price and quantity variances Problem 21-3A Part 1 Variable or Fixed Classification Amount Variable costs Indirect m Indirect labor Power Repairs and maintenan Total variable cost Fixed costs (per month) Depreciation-Building Depreciation-Machinery Taxes and insuran Supervision Total fixed costs Part 2 ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Flexible Flexible Total Amount per Fixed Variable Budget for Unit Sales of Budget for Unit Sales of 15,000 Sales of 17,000 Budget for Unit Variable overhead costs Indirect labor. Power.... Repairs and maint... Total variable costs Fixed overhead costs Depreciation-Building. Taxes and insurance Total fixed costs... Total overhead costs.... Part 3 Direct Materials Variances Preliminary computations Actual material used (given): Standard quantity of materials: Actual price (given): Standard price (given): Direct material cost variances Actual units at actual cost r# lbs. @ $1 ..............................- Standard units at standard cost r# lbs. @ $1 . Direct material cost variance Direct Materialsrial Direct Materials Price and Quantity Variances Actual Costs AQ x AP AQ x SP Standard Costs sQ x SP lbs. x per lb lbs. x per lb lbs. x per lb Price variance) (Quantity variance) Total materials variance) Part 4 Direct labor variances Actual hours used (given): Standard hours: Actual rate (given): Standard rate (given): Direct labor cost variances Actual units at actual cost [hrs. $.... Standard units at standard cost [hrs. @ $1 Direct labor cost variance Direct Labor Rate and Efficiency Variances Actual Costs AH x AR AH x SR Standard Costs SH x SR hours x per hr. hours x per hr. hours x per hr. Rate variance) (Efficiency variance) Total labor variance) Part 5 ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Volume Variance Expected production level Production level achieved Volume variance 75% of capacity 75% of capacity none Flexible Actual Budget Variances* F/U Controllable Variance Variable overhead costs Results Indirect materials Indirect labor Power Total variable costs Fixed overhead costs Depreciation B on- Supervision Total fixed costs. Total overhead costs F Favorable variance; and U Unfavorable variance