[The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. @ $5.00 per Ib.) $ 15.00 Direct labor (2.0 hrs. @ $12.00 per hr.) 24.00 Overhead (2.0 hrs. @ $18.50 per hr.) 37.00 Total standard cost $ 76.00 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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 $ 15,000 Indirect labor 90,000 Power 15,000 Repairs and maintenance 45,000 Total variable overhead costs $ 165,000 Fixed overhead costs Depreciation—Building 24,000 Depreciation—Machinery 70,000 Taxes and insurance 17,000 Supervision 279,000 Total fixed overhead costs 390,000 Total overhead costs $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 Ibs. @ $5.20 per lb.) $ 236,600 Direct labor (22,000 hrs. @ $12.30 per hr.) 270,600 Overhead costs Indirect materials $ 41,100 Indirect labor 176,400 Power 17,250 Repairs and maintenance 51,750 Depreciation—Building 24,000 Depreciation—Machinery 94,500 Taxes and insurance 15,300 Supervision 279,000 699,300 Total costs $ 1,206,500 rev: 04_27_2020_QC_CS-209738 3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.)
[The following information applies to the questions displayed below.]
Antuan Company set the following standard costs for one unit of its product.
Direct materials (3.0 Ibs. @ $5.00 per Ib.) | $ | 15.00 |
Direct labor (2.0 hrs. @ $12.00 per hr.) | 24.00 | |
Overhead (2.0 hrs. @ $18.50 per hr.) | 37.00 | |
Total |
$ | 76.00 |
The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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 | $ | 15,000 | |||
Indirect labor | 90,000 | ||||
Power |
15,000 |
||||
Repairs and maintenance | 45,000 | ||||
Total variable overhead costs | $ | 165,000 | |||
Fixed overhead costs | |||||
24,000 | |||||
Depreciation—Machinery | 70,000 | ||||
Taxes and insurance | 17,000 | ||||
Supervision | 279,000 | ||||
Total fixed overhead costs | 390,000 | ||||
Total overhead costs | $ | 555,000 | |||
The company incurred the following actual costs when it operated at 75% of capacity in October.
Direct materials (45,500 Ibs. @ $5.20 per lb.) | $ | 236,600 | |||
Direct labor (22,000 hrs. @ $12.30 per hr.) | 270,600 | ||||
Overhead costs | |||||
Indirect materials | $ | 41,100 | |||
Indirect labor | 176,400 | ||||
Power | 17,250 | ||||
Repairs and maintenance | 51,750 | ||||
Depreciation—Building | 24,000 | ||||
Depreciation—Machinery | 94,500 | ||||
Taxes and insurance | 15,300 | ||||
Supervision | 279,000 | 699,300 | |||
Total costs | $ | 1,206,500 | |||
rev: 04_27_2020_QC_CS-209738
3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.)
![Problem 23-3A Part 3
B. Compute the direct materlals cost varlance, Including Its price and quantity varlances. (Indicate the effect of each varlance by
selecting for favorable, unfavorable, and No varlance.)
Actual Cost
Standard Cost
< Prev
15.
6 7
of 8
Next >
7167.jpg
143996935 18383...jpg
here to search
PriSc
Ins
F11
F12](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b3a6d3c-83a6-4982-a2e0-14dbbe575b03%2F3a118ff7-a413-4026-9747-a4b43c7158ed%2Fadv68gn_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)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)