[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 (1.6 hours @ $14.00 per hour) Overhead (1.6 hours @ $18.50 per hour) Standard cost per unit $ 20.00 22.40 29.60 $ 72.00 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
[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 (1.6 hours @ $14.00 per hour) Overhead (1.6 hours @ $18.50 per hour) Standard cost per unit $ 20.00 22.40 29.60 $ 72.00 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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[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 (1.6 hours @ $14.00 per hour)
Overhead (1.6 hours @ $18.50 per hour)
Standard cost per unit
$ 20.00
22.40
29.60
$ 72.00
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
$ 15,000
75,000
Power
15,000
Maintenance
30,000
Total variable overhead costs.
135,000
Fixed overhead costs
23,000
71,000
18,000
197,000
309,000
$ 444,000
Depreciation-Building
Depreciation-Machinery
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 (60,500 pounds @ $5.10 per pound)
Direct labor (21,000 hours @ $14.40 per hour)
Overhead costs
Indirect materials
Indirect labor
Power
Maintenance
Depreciation-Building
Depreciation-Machinery
Taxes and insurance
Supervisory salaries
Total costs
$ 41,900
176,650
17,250
34,500
23,000
95,850
16,200
197,000
$ 308,550
302,400
602,350
$ 1,213,300
3. Compute the direct labor variance, including its rate and efficiency variances.
Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to
two decimal places.
Actual Cost
Standard Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2bb83edc-2eb0-408e-a116-afd72ee4a275%2F276cdfc8-57d4-45a8-9b8b-9ca6bebf0ab2%2Fqr1mrq5_processed.jpeg&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 (1.6 hours @ $14.00 per hour)
Overhead (1.6 hours @ $18.50 per hour)
Standard cost per unit
$ 20.00
22.40
29.60
$ 72.00
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
$ 15,000
75,000
Power
15,000
Maintenance
30,000
Total variable overhead costs.
135,000
Fixed overhead costs
23,000
71,000
18,000
197,000
309,000
$ 444,000
Depreciation-Building
Depreciation-Machinery
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 (60,500 pounds @ $5.10 per pound)
Direct labor (21,000 hours @ $14.40 per hour)
Overhead costs
Indirect materials
Indirect labor
Power
Maintenance
Depreciation-Building
Depreciation-Machinery
Taxes and insurance
Supervisory salaries
Total costs
$ 41,900
176,650
17,250
34,500
23,000
95,850
16,200
197,000
$ 308,550
302,400
602,350
$ 1,213,300
3. Compute the direct labor variance, including its rate and efficiency variances.
Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to
two decimal places.
Actual Cost
Standard Cost
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