ffect of each variance by selecting favorable, unfavorable, or no variance.) Expected production Answer is not complete. ANTUAN COMPANY Overhead Variance Report For Month Ended October 31
ffect of each variance by selecting favorable, unfavorable, or no variance.) Expected production Answer is not complete. ANTUAN COMPANY Overhead Variance Report For Month Ended October 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Subject : Accounting
Transcribed Image Text:4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the
effect of each variance by selecting favorable, unfavorable, or no variance.)
Expected production
volume
Production level achieved
Volume Variance
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
Total fixed overhead costs
Total overhead costs
Volume Variance
Budgeted (flexible) overhead
Standard overhead applied
Volume variance
Total overhead variance
✓
✓
333
✓
X Answer is not complete.
ANTUAN COMPANY
Overhead Variance Report
For Month Ended October 31
75% of capacity
75% of capacity
No variance
Flexible
Budget
Actual
Results
Variances
$
0
Favorable/Unfavorable
![!
Required information
Problem 8-3A (Algo) Flexible overhead budget; materials, labor, and overhead
variances; and overhead variance report LO P1, P2, P3, P4
[The following information applies to the questions displayed below.]
Antuan Company set the following standard costs per unit for its product.
Direct materials (4.0 pounds @ $4.00 per pound)
Direct labor (1.7 hours @ $14.00 per hour)
$ 16.00
23.80
31.45
Overhead (1.7 hours @ $18.50 per hour)
Standard cost per unit
$ 71.25
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.
Total fixed overhead costs
Total overhead costs
Indirect materials
Indirect labor
Power
The company incurred the following actual costs when it operated at 75% of capacity in October.
Direct materials (61,000 pounds @ $4.10 per pound)
Direct labor (23,000 hours @ $14.30 per hour)
$ 250,100
328,900
Overhead costs
Maintenance
$ 15,000
75,000
15,000
30,000
135,000
Depreciation-Building
Depreciation-Machinery
Taxes and insurance
Supervisory salaries
Total costs
25,000
71,000
18,000
222,750
336,750
$ 471,750
$ 41,850
176,050
17,250
34,500
25,000
95,850
16,200
222,750
629,450
$ 1,208,450](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a8374e2-0c11-468f-938f-bf163a68d0f0%2F1718ab1d-79bb-4994-aa73-1078d1fc741c%2Fhshahkk_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Problem 8-3A (Algo) Flexible overhead budget; materials, labor, and overhead
variances; and overhead variance report LO P1, P2, P3, P4
[The following information applies to the questions displayed below.]
Antuan Company set the following standard costs per unit for its product.
Direct materials (4.0 pounds @ $4.00 per pound)
Direct labor (1.7 hours @ $14.00 per hour)
$ 16.00
23.80
31.45
Overhead (1.7 hours @ $18.50 per hour)
Standard cost per unit
$ 71.25
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.
Total fixed overhead costs
Total overhead costs
Indirect materials
Indirect labor
Power
The company incurred the following actual costs when it operated at 75% of capacity in October.
Direct materials (61,000 pounds @ $4.10 per pound)
Direct labor (23,000 hours @ $14.30 per hour)
$ 250,100
328,900
Overhead costs
Maintenance
$ 15,000
75,000
15,000
30,000
135,000
Depreciation-Building
Depreciation-Machinery
Taxes and insurance
Supervisory salaries
Total costs
25,000
71,000
18,000
222,750
336,750
$ 471,750
$ 41,850
176,050
17,250
34,500
25,000
95,850
16,200
222,750
629,450
$ 1,208,450
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