please solve and show full work with steps for better understanding Compute the direct materials variance, including its price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Supervisory salariesTotal fixed overhead costsTotal overhead costsThe company incurred the following actual costs when it operated at 75% of capacity in OctoberDirect materials (75,500 pounds @ $4.18 per pound)Direct labor (21,eee hours @ $18.20 per hour)Overhead costsIndirect materialsIndirect laborPoverMaintenance226,750336,750$ 471,758Depreciation-BuildingDepreciation MachineryTaxes and insuranceSupervisory salariesTotal costs$ 41,400176,95017,25034,50023,00095,85014,400226,750$ 309,550214,200430, 100$ 1,153,850 Antuan Company set the following standard costs per unit for its product.Direct materials (5.0 pounds @ $4.00 per pound)Direct labor (1.7 hours @ $18.00 per hour)$ 20.0017.0031.45Overhead (1.7 hours @ $18.50 per hour)Standard cost per unit$ 68.45The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of thefactory's capacity of 20,000 units per month. Following are the company's budgeted overhead costs per month atthe 75% capacity level.Overhead Budget (75% Capacity)Variable overhead costsIndirect materialsIndirect laborPowerMaintenanceTotal variable overhead costsFixed overhead costsDepreciation-BuildingDepreciation-MachineryTaxes and insuranceSupervisory salaries$ 15,00075,00015,00030,000135,00023,00071,00016,000226,750

Concept:- Direct Material Price Variance refers to the difference between the actual cost of a unit…

Antuan Company set the following standard costs per unit for its product. Direct materials (5.0 pounds @ $4.00 per pound) Direct labor (1.7 hours @ $10.00 per hour) Overhead (1.7 hours @ $18.50 per hour) $ 20.00 17.00 31.45 Standard cost per unit $ 68.45 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 an 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 $ 15,000 75,000 15,000 30,000 135,000 23,000 71,000 16,000 226,750

Antuan Company set the following standard costs per unit for its product. Direct materials (5.0 pounds @ $4.00 per pound) Direct labor (1.7 hours @ $10.00 per hour) Overhead (1.7 hours @ $18.50 per hour) $ 20.00 17.00 31.45 Standard cost per unit $ 68.45 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 an 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 $ 15,000 75,000 15,000 30,000 135,000 23,000 71,000 16,000 226,750

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

please solve and show full work with steps for better understanding

Compute the direct materials variance, including its price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.

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 (75,500 pounds @ $4.18 per pound)
Direct labor (21,eee hours @ $18.20 per hour)
Overhead costs
Indirect materials
Indirect labor
Pover
Maintenance
226,750
336,750
$ 471,758
Depreciation-Building
Depreciation Machinery
Taxes and insurance
Supervisory salaries
Total costs
$ 41,400
176,950
17,250
34,500
23,000
95,850
14,400
226,750
$ 309,550
214,200
430, 100
$ 1,153,850

Antuan Company set the following standard costs per unit for its product.
Direct materials (5.0 pounds @ $4.00 per pound)
Direct labor (1.7 hours @ $18.00 per hour)
$ 20.00
17.00
31.45
Overhead (1.7 hours @ $18.50 per hour)
Standard cost per unit
$ 68.45
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
$ 15,000
75,000
15,000
30,000
135,000
23,000
71,000
16,000
226,750

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