[The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. @ $5.00 per Ib.)$15.00Direct labor (2.0 hrs. @ $12.00 per hr.) 24.00Overhead (2.0 hrs. @ $18.50 per hr.) 37.00Total standard cost$76.00 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 90,000 Power 15,000 Repairs and maintenance 45,000 Total variable overhead costs $165,000Fixed overhead costs Depreciation—Building 24,000 Depreciation—Machinery 70,000 Taxes and insurance 17,000 Supervision 279,000 Total fixed overhead costs 390,000Total overhead costs $555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 Ibs. @ $5.20 per lb.) $236,600Direct labor (22,000 hrs. @ $12.30 per hr.) 270,600Overhead costs Indirect materials$41,100 Indirect labor 176,400 Power 17,250 Repairs and maintenance 51,750 Depreciation—Building 24,000 Depreciation—Machinery 94,500 Taxes and insurance 15,300 Supervision 279,000 699,300Total costs $1,206,500 ANTUAN COMPANYOverhead Variance ReportFor Month Ended October 31Expected production volumeProduction level achievedVolume varianceVariancesFav. /Unfav.Flexible Budget Actual ResultsVariable costsesFixed costsTotal overhead costs< Prev7.of 849119 16157 pg143458376 87167..jpg143996935 18383..jpgO Type here to searchF1F2CF3F4F5F6F7F8团

Budgeting: Budgeting can be defined as the process of establishing the financial plan for a specific…

Answered: ANTUAN COMPANY Overhead Variance Report…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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[The following information applies to the questions displayed below.]

Antuan Company set the following standard costs for one unit of its product.


Direct materials (3.0 Ibs. @ $5.00 per Ib.)	$	15.00
Direct labor (2.0 hrs. @ $12.00 per hr.)		24.00
Overhead (2.0 hrs. @ $18.50 per hr.)		37.00
Total standard cost	$	76.00

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		90,000
Power		15,000
Repairs and maintenance		45,000
Total variable overhead costs			$	165,000
Fixed overhead costs
Depreciation—Building		24,000
Depreciation—Machinery		70,000
Taxes and insurance		17,000
Supervision		279,000
Total fixed overhead costs				390,000
Total overhead costs			$	555,000

The company incurred the following actual costs when it operated at 75% of capacity in October.


Direct materials (45,500 Ibs. @ $5.20 per lb.)			$	236,600
Direct labor (22,000 hrs. @ $12.30 per hr.)				270,600
Overhead costs
Indirect materials	$	41,100
Indirect labor		176,400
Power		17,250
Repairs and maintenance		51,750
Depreciation—Building		24,000
Depreciation—Machinery		94,500
Taxes and insurance		15,300
Supervision		279,000		699,300
Total costs			$	1,206,500

ANTUAN COMPANY
Overhead Variance Report
For Month Ended October 31
Expected production volume
Production level achieved
Volume variance
Variances
Fav. /Unfav.
Flexible Budget Actual Results
Variable costs
es
Fixed costs
Total overhead costs
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