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 the factory's capacity of 20,000 units per month. Following are the company's budgeted overhead per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs $ 15,000 75,000 15,000 30,000 135,000 Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery 23,000 72,000 17,000 Taxes and insurance 224,750 336,750 Supervisory salaries Total fixed overhead costs Total overhead costs $ 471,750 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 a $13.30 per hour) $ 195,300 292.600
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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.)
The drop down options under "actual
The drop down options for the left bottom 3 rows are: total variable overhead cost variance, variable overhead efficiency variance, variable overhead spending variance, volume variance, direct material variance, Direct labor efficiency variance, direct labor rate variance, direct materials price variance, direct materials quantity variance.
the drop down options for the right yellow 3 columns are: favorable, unfavorable, no variance
please use the exact format as shown in photos. Thank you !
![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
30,000
135,000
Indirect materials
Indirect labor
Power
Maintenance
Total variable overhead costs
Fixed overhead costs
Depreciation-Building
Depreciation-Machinery
Taxes and insurance
23,000
72,000
17,000
224,750
Supervisory salaries
336,750
$ 471,750
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
Rowor
17 250](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98e87c1e-d790-489b-a066-bf9d39e643de%2Fb2d35d01-4dd5-4a6a-b8ad-44e8ac08f4e8%2Fu28i5ur_processed.jpeg&w=3840&q=75)
![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
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.)
Actual Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98e87c1e-d790-489b-a066-bf9d39e643de%2Fb2d35d01-4dd5-4a6a-b8ad-44e8ac08f4e8%2F0whembc_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)