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
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c4ae026-40eb-4d69-8ff7-cf682bd6bf93%2Fdd7bfe79-b6c0-4012-8097-bab03a3cc104%2Fr3rstde_processed.png&w=3840&q=75)
Transcribed Image Text: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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c4ae026-40eb-4d69-8ff7-cf682bd6bf93%2Fdd7bfe79-b6c0-4012-8097-bab03a3cc104%2Furmo81j_processed.png&w=3840&q=75)
Transcribed Image Text: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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