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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.) Expected production volume Production level achieved Volume Variance Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation Building Depreciation Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs Volume Variance Budgeted (flexible) overhead Standard overhead applied Volume variance Total overhead variance ✔ 75% of capacity 75% of capacity No variance Flexible Budget $ $ ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 15,000 75,000 15,000 30,000 135,000 24,000 71,000 18,000 251,500 Answer is not complete. 364,500 499,500 Actual Results 24,000 95,850 16,200 251,500 387,550 $ 657,950 Variances Favorable/Unfavorable 0✔ $ (24,850) Unfavorable Favorable 1,800 0✔ $ (23,050) 0 Unfavorable Unfavorable No variance

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.) Expected production volume Production level achieved Volume Variance Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation Building Depreciation Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs Volume Variance Budgeted (flexible) overhead Standard overhead applied Volume variance Total overhead variance ✔ 75% of capacity 75% of capacity No variance Flexible Budget $ $ ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 15,000 75,000 15,000 30,000 135,000 24,000 71,000 18,000 251,500 Answer is not complete. 364,500 499,500 Actual Results 24,000 95,850 16,200 251,500 387,550 $ 657,950 Variances Favorable/Unfavorable 0✔ $ (24,850) Unfavorable Favorable 1,800 0✔ $ (23,050) 0 Unfavorable Unfavorable No variance

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.) Expected production volume Production level achieved Volume Variance Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs Volume Variance Budgeted (flexible) overhead Standard overhead applied Volume variance Total overhead variance 75% of capacity 75% of capacity No variance Flexible Budget $ $ ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 15,000 75,000 15,000 30,000 135,000 24,000 71,000 18,000 251,500 364,500 499,500 Answer is not complete. $ Actual Results 24,000✔ 95,850✔✔ 16,200✔ 251,500✔ Variances 387,550 $ (23, 657,950 $ (24,850) Unfavorable Favorable 1,800 0 Favorable/Unfavorable 0 Unfavorable Unfavorable No variance
Transcribed Image Text: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.) Expected production volume Production level achieved Volume Variance Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs Volume Variance Budgeted (flexible) overhead Standard overhead applied Volume variance Total overhead variance 75% of capacity 75% of capacity No variance Flexible Budget $ $ ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 15,000 75,000 15,000 30,000 135,000 24,000 71,000 18,000 251,500 364,500 499,500 Answer is not complete. $ Actual Results 24,000✔ 95,850✔✔ 16,200✔ 251,500✔ Variances 387,550 $ (23, 657,950 $ (24,850) Unfavorable Favorable 1,800 0 Favorable/Unfavorable 0 Unfavorable Unfavorable No variance
Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $14.00 per hour) Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit 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 Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries. Total fixed overhead costs Total overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 15,000 75,000 15, 000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,500 pounds @ $5.10 per pound) Direct labor (19,000 hours @ $14.20 per hour) $ 237,150 269, 800 Overhead costs Expected production volume Production level achieved Volume Variance 30,000 135,000 24,000 71,000 18,000 75% of capacity 75% of capacity No variance 251, 500 364, 500 $ 499, 500 $15.00 25.20 33.30 $ 73.50 ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 $ 41,700 176, 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.) 17,250 34,500 24,000 95, 850 16, 200 251, 500 657, 950 $ 1,164,900
Transcribed Image Text:Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $14.00 per hour) Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit 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 Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries. Total fixed overhead costs Total overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 15,000 75,000 15, 000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,500 pounds @ $5.10 per pound) Direct labor (19,000 hours @ $14.20 per hour) $ 237,150 269, 800 Overhead costs Expected production volume Production level achieved Volume Variance 30,000 135,000 24,000 71,000 18,000 75% of capacity 75% of capacity No variance 251, 500 364, 500 $ 499, 500 $15.00 25.20 33.30 $ 73.50 ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 $ 41,700 176, 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.) 17,250 34,500 24,000 95, 850 16, 200 251, 500 657, 950 $ 1,164,900
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