2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) For the first two drop downs in the first row under "actual cost" as well as the middle box first two rows and under " standard cost" the drop down options are: actual quantity, standard quantity. Everything else in the box needs numbersFor the three last rows in the longer boxes below "actual cost" the drop down options are: Direct labor efficiency variance, direct labor rate variance, direct materials price variance, direct materials quantity variance, direct materials variance, total variable overhead cost variable, variable overhead ffeciency variance, variable overhead spending variance, volume variance. For the far right long yellow rows the drop down options are, favorable, unfavorable and no varibaleplease use the exact format used in the photos thank you! The company incurred the following actual costs when it operated at 75% of capacity in October.Direct materials (46,500 pounds @ $4.20 per pound)Direct labor (22,000 hours @ $13.30 per hour)Overhead costs$ 195,300292,600$ 41,950176,05017,25034,50023,00097,20015,300224,750Indirect materialsIndirect laborPowerMaintenanceDepreciation-BuildingDepreciation-MachineryTaxes and insurance630,000$ 1,117,900Supervisory salariesTotal costs2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance byselecting favorable, unfavorable, or no variance.)Actual Cost Antuan Company set the following standard costs per unit for its product.Direct materials (3.0 pounds @ $4.00 per pound)Direct labor (1.7 hours @ $13.00 per hour)Overhead (1.7 hours @ $18.50 per hour)$ 12.0022.1031.45Standard cost per unit$ 65.55The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% ofthe factory's capacity of 20,000 units per month. Following are the company's budgeted overhead costsper month at the 75% capacity level.Overhead Budget (75% Capacity)Variable overhead costs$ 15,00075,00015,000Indirect materialsIndirect laborPower30,000135,000MaintenanceTotal variable overhead costsFixed overhead costsDepreciation-BuildingDepreciation-Machinery23,00072,00017,000224,750336,750$ 471,750Taxes and insuranceSupervisory salariesTotal fixed overhead costsTotal overhead costsThe company incurred the following actual costs when it operated at 75% of capacity in October.Direct materials (46,500 pounds @ $4.20 per pound)Direct labor (22,000 hours @ $13.30 per hour)$ 195,300292,600Overhead costs$ 41,950176,050Indirect materialsIndirect labor

When the actual price is higher than the standard price the price variance is unfavorable .…

Answered: Antuan Company set the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

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

For the first two drop downs in the first row under "actual cost" as well as the middle box first two rows and under " standard cost" the drop down options are: actual quantity, standard quantity. Everything else in the box needs numbers

For the three last rows in the longer boxes below "actual cost" the drop down options are: Direct labor efficiency variance, direct labor rate variance, direct materials price variance, direct materials quantity variance, direct materials variance, total variable overhead cost variable, variable overhead ffeciency variance, variable overhead spending variance, volume variance.

For the far right long yellow rows the drop down options are, favorable, unfavorable and no varibale

please use the exact format used in the photos thank you!

The company incurred the following actual costs when it operated at 75% of capacity in October.
Direct materials (46,500 pounds @ $4.20 per pound)
Direct labor (22,000 hours @ $13.30 per hour)
Overhead costs
$ 195,300
292,600
$ 41,950
176,050
17,250
34,500
23,000
97,200
15,300
224,750
Indirect materials
Indirect labor
Power
Maintenance
Depreciation-Building
Depreciation-Machinery
Taxes and insurance
630,000
$ 1,117,900
Supervisory salaries
Total costs
2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by
selecting favorable, unfavorable, or no variance.)
Actual Cost

Antuan Company set the following standard costs per unit for its product.
Direct materials (3.0 pounds @ $4.00 per pound)
Direct labor (1.7 hours @ $13.00 per hour)
Overhead (1.7 hours @ $18.50 per hour)
$ 12.00
22.10
31.45
Standard cost per unit
$ 65.55
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
$ 15,000
75,000
15,000
Indirect materials
Indirect labor
Power
30,000
135,000
Maintenance
Total variable overhead costs
Fixed overhead costs
Depreciation-Building
Depreciation-Machinery
23,000
72,000
17,000
224,750
336,750
$ 471,750
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 (46,500 pounds @ $4.20 per pound)
Direct labor (22,000 hours @ $13.30 per hour)
$ 195,300
292,600
Overhead costs
$ 41,950
176,050
Indirect materials
Indirect labor

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions