Homework Help is Here – Start Your Trial Now!
Business
Accounting
Antuan Company set the following standard costs per unit for its product. $ 15.00 Direct materials (3.0 pounds @ $5.00 per pound) Direct labor (1.8 hours $14.00 per hour) 25.20 33.30 Overhead (1.8 hours @ $18.50 per hour) $ 73.50 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 Indirect labor Power Maintenance Total variable overhead costs Ja Fixed overhead costs Depreciation Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs Indirect materials Indirect labor DREA Power Maintenance Depreciation Building The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,588 pounds @ $5.18 per pound) Direct labor (19,888 hours @ $14.29 per hour) $ 237,150 269, 880 Overhead costs Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 15,800 75,000 15,000 30,000 135,868 24,900 71,900 Actual Cost 18, 860 251, 500 354,500 $ 499, 500 $ 41,788 176, 950 17, 258 34,500 24,860 95, 850 16, 200 251, 500 657,950 $ 1,164,986 Compute the direct labor variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting vorable, unfavorable, or no variance. Round "Rate per hour" answers to two decimal places.) Standard Cost

Antuan Company set the following standard costs per unit for its product. $ 15.00 Direct materials (3.0 pounds @ $5.00 per pound) Direct labor (1.8 hours $14.00 per hour) 25.20 33.30 Overhead (1.8 hours @ $18.50 per hour) $ 73.50 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 Indirect labor Power Maintenance Total variable overhead costs Ja Fixed overhead costs Depreciation Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs Indirect materials Indirect labor DREA Power Maintenance Depreciation Building The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,588 pounds @ $5.18 per pound) Direct labor (19,888 hours @ $14.29 per hour) $ 237,150 269, 880 Overhead costs Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 15,800 75,000 15,000 30,000 135,868 24,900 71,900 Actual Cost 18, 860 251, 500 354,500 $ 499, 500 $ 41,788 176, 950 17, 258 34,500 24,860 95, 850 16, 200 251, 500 657,950 $ 1,164,986 Compute the direct labor variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting vorable, unfavorable, or no variance. Round "Rate per hour" answers to two decimal places.) Standard Cost

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 17P: Shinto Corp. uses a standard cost system and manufactures one product. The variable costs per...
See similar textbooks
icon
Related questions
Question

5

Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $14.00 per hour) Overhead (1.8 hours @ $18.50 per hour) 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 Indirect labor Power Maintenance www Total variable overhead costs Fixed overhead costs Depreciation Building Depreciation Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs Maintenance Depreciation Building Depreciation Machinery Taxes and insurance Supervisory salaries Total costs $ 15,800 75,800 15,800 30, 800 135,800 24,800 71, 900 Actual Cost $ 15.00 25.20 33.30 S 73.50 18,000 251, 500 354, 580 $ 499, 500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,580 pounds @ $5.10 per pound) $ 237,150 269, 880 Direct labor (19,888 hours @ $14.20 per hour) Overhead costs Indirect materials www Indirect labor Ser Power $ 41,760 176, 950 17,250 34,500 24,900 95, 850 16, 200 251, 500 657,950 $ 1,164,980 3. Compute the direct labor variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to two decimal places.) Standard Cost
Transcribed Image Text:Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $14.00 per hour) Overhead (1.8 hours @ $18.50 per hour) 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 Indirect labor Power Maintenance www Total variable overhead costs Fixed overhead costs Depreciation Building Depreciation Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs Maintenance Depreciation Building Depreciation Machinery Taxes and insurance Supervisory salaries Total costs $ 15,800 75,800 15,800 30, 800 135,800 24,800 71, 900 Actual Cost $ 15.00 25.20 33.30 S 73.50 18,000 251, 500 354, 580 $ 499, 500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,580 pounds @ $5.10 per pound) $ 237,150 269, 880 Direct labor (19,888 hours @ $14.20 per hour) Overhead costs Indirect materials www Indirect labor Ser Power $ 41,760 176, 950 17,250 34,500 24,900 95, 850 16, 200 251, 500 657,950 $ 1,164,980 3. Compute the direct labor variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to two decimal places.) Standard Cost
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost classification
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS