Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $6.0 Direct labor (3.7 hours Overhead (1-7 hours @ $18.50 per 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 $ 15,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 3PA: Direct materials, direct labor, and factory overhead cost variance analysis Mackinaw Inc. processes...
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variance report LO P1, P2, P3, P4
3 of 4
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and overhead
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Antuan Company set the following standard costs per unit for its product.
Direct materials (3.0 pounds @ $6.00
Direct labor (1.7 hours $13.00
Overhead (1.7 hours $18.50 per hour
Standard cost per unit
$ 18.00
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 (75% Capacity)
Variable overhead costs
Indirect materials
Indirect labor
15.000
Power
Maintenance
000
$0.000
Total variable overhead costs
135,000
Fixed overhead costs
Depreciation-Building
24.000
1701800
17.000
225.750
13361750
$ 471,750
Depreciation-Machinery
Taxes and insurance
Supervisory salaries
Total fixed overhead costs
Total overhead costs
The company incurred the following actual costs when it operated at 75% of capacity in October.
Direct materials (46, see pounds @ $6.
Direct labor (21,080 hours @ $13110 p
pound
Overhead costs
Indirect materials
Indirect labor
Maintenance
Depreciation-Building
Depreciation Machinery
Taxes and insurance
Supervisory salaries
Total costs
$ 288,300
275,100
41 100
176,950
17,250
34,500
24,000
94,500
15.300
225,758
629, 350
$1,192,750
Problem 21-3A (Algo) Part 3
3. Compute the direct labor variance, including its rate and efficiency variances. (Indicate the effect of each varlance by selecting
favorable, unfavorable, or no varlance. Round "Rate per hour" answers to two decimal places.)
Actual Cost
Standard Cost
Transcribed Image Text:variance report LO P1, P2, P3, P4 3 of 4 [The following information applies to the questions displayed below) and overhead Skipped eBook ferences Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $6.00 Direct labor (1.7 hours $13.00 Overhead (1.7 hours $18.50 per hour Standard cost per unit $ 18.00 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 (75% Capacity) Variable overhead costs Indirect materials Indirect labor 15.000 Power Maintenance 000 $0.000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building 24.000 1701800 17.000 225.750 13361750 $ 471,750 Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46, see pounds @ $6. Direct labor (21,080 hours @ $13110 p pound Overhead costs Indirect materials Indirect labor Maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervisory salaries Total costs $ 288,300 275,100 41 100 176,950 17,250 34,500 24,000 94,500 15.300 225,758 629, 350 $1,192,750 Problem 21-3A (Algo) Part 3 3. Compute the direct labor variance, including its rate and efficiency variances. (Indicate the effect of each varlance by selecting favorable, unfavorable, or no varlance. Round "Rate per hour" answers to two decimal places.) Actual Cost Standard Cost
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