Required information [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 @ $5.00 per pound) Direct labor (2.0 hours@ $11.00 per hour) Overhead (2.0 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 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 Maintenance Depreciation-Building Depreciation-Machinery The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,500 pounds @ $5.10 per pound) $ 313,650 246,400 Direct labor (22,000 hours @ $11.20 per hour) Overhead costs Taxes and insurance Supervisory salaries Total costs $ 15,000 75,000 15,000 30,000 135,000 $ 20.00 22.00 37.00 $ 79.00 24,000 71,000 16,000 309,000 420,000 $ 555,000 $ 41,100 176,400 17,250 34,500 24,000 95,850 14,400 309,000 712,500 $ 1,272,550
Required information [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 @ $5.00 per pound) Direct labor (2.0 hours@ $11.00 per hour) Overhead (2.0 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 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 Maintenance Depreciation-Building Depreciation-Machinery The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,500 pounds @ $5.10 per pound) $ 313,650 246,400 Direct labor (22,000 hours @ $11.20 per hour) Overhead costs Taxes and insurance Supervisory salaries Total costs $ 15,000 75,000 15,000 30,000 135,000 $ 20.00 22.00 37.00 $ 79.00 24,000 71,000 16,000 309,000 420,000 $ 555,000 $ 41,100 176,400 17,250 34,500 24,000 95,850 14,400 309,000 712,500 $ 1,272,550
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead.
Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.
Expected production volume
Production level achieved
Volume Variance
Variable overhead costs
Fixed overhead costs
Total overhead costs
Volume Variance
Volume variance
Total overhead variance
ANTUAN COMPANY
Overhead Variance Report
For Month Ended October 31
Flexible Budget Actual Results Variances Favorable or Unfavorable
$
69
0
![Required information
[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 @ $5.00 per pound)
Direct labor (2.0 hours @ $11.00 per hour)
Overhead (2.0 hours @ $18.50 per hour)
$ 20.00
22.00
37.00
Standard cost per unit
$ 79.00
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
Maintenance
$ 15,000
75,000
15,000
30,000
135,000
The company incurred the following actual costs when it operated at 75% of capacity in October.
Direct materials (61,500 pounds @ $5.10 per pound)
Direct labor (22,000 hours @ $11.20 per hour)
$ 313,650
246,400
Overhead costs
Depreciation-Building
Depreciation-Machinery
Taxes and insurance
Supervisory salaries.
Total costs
24,000
71,000
16,000
309,000
420,000
$ 555,000
$41,100
176,400
17,250
34,500
24,000
95,850
14,400
309,000
712,500
$ 1,272,550](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb4a77155-f926-48a9-a261-c8a1a2f25525%2F9d72818a-86aa-4aae-8629-82ce352c355e%2F89itpkf_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[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 @ $5.00 per pound)
Direct labor (2.0 hours @ $11.00 per hour)
Overhead (2.0 hours @ $18.50 per hour)
$ 20.00
22.00
37.00
Standard cost per unit
$ 79.00
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
Maintenance
$ 15,000
75,000
15,000
30,000
135,000
The company incurred the following actual costs when it operated at 75% of capacity in October.
Direct materials (61,500 pounds @ $5.10 per pound)
Direct labor (22,000 hours @ $11.20 per hour)
$ 313,650
246,400
Overhead costs
Depreciation-Building
Depreciation-Machinery
Taxes and insurance
Supervisory salaries.
Total costs
24,000
71,000
16,000
309,000
420,000
$ 555,000
$41,100
176,400
17,250
34,500
24,000
95,850
14,400
309,000
712,500
$ 1,272,550
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