[The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. $ 30 34 Direct materials (6 pounds @ $5 per pound) Direct labor (2 hours @ $17 per hour) Overhead (2 hours @ $18.50 per hour) 37 $ 101 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 $ 45,000 180,000 45,000 90,000 360,000 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries. Total costs 24,000 80,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (91,000 pounds @ $5.10 per pound) Direct labor (30,500 hours @ $17.25 per hour) $ 464,100 526, 125 Overhead costs 12,000 79,000 195,000 $ 555,000 $ 44,250 177,750 43,000 96,000 24,000 75,000 11,500 89,000 560,500 $ 1,550,725
[The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. $ 30 34 Direct materials (6 pounds @ $5 per pound) Direct labor (2 hours @ $17 per hour) Overhead (2 hours @ $18.50 per hour) 37 $ 101 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 $ 45,000 180,000 45,000 90,000 360,000 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries. Total costs 24,000 80,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (91,000 pounds @ $5.10 per pound) Direct labor (30,500 hours @ $17.25 per hour) $ 464,100 526, 125 Overhead costs 12,000 79,000 195,000 $ 555,000 $ 44,250 177,750 43,000 96,000 24,000 75,000 11,500 89,000 560,500 $ 1,550,725
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
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
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/Unfavorable
$
0
![[The following information applies to the questions displayed below.]
Antuan Company set the following standard costs per unit for its product.
Direct materials (6 pounds @ $5 per pound)
Direct labor (2 hours @ $17 per hour)
Overhead (2 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
$ 45,000
180,000
45,000
90,000
360,000
The company incurred the following actual costs when it operated at 75% of capacity in October.
Direct materials (91,000 pounds @ $5.10 per pound)
$ 464,100
526, 125
Direct labor (30,500 hours @ $17.25 per hour)
Overhead costs
Depreciation-Building
Depreciation-Machinery
Taxes and insurance
Supervisory salaries
Total costs
$ 30
34
37
$ 101
24,000
80,000
12,000
79,000
195,000
$ 555,000
$ 44,250
177,750
43,000
96,000
24,000
75,000
11,500
89,000
560, 500
$ 1,550,725](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9de62490-29a1-4126-ad53-0c4c5fc3af72%2F4d2aaa49-3ab7-4735-a68d-5e5f990c52af%2F6z0bi4w_processed.png&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Antuan Company set the following standard costs per unit for its product.
Direct materials (6 pounds @ $5 per pound)
Direct labor (2 hours @ $17 per hour)
Overhead (2 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
$ 45,000
180,000
45,000
90,000
360,000
The company incurred the following actual costs when it operated at 75% of capacity in October.
Direct materials (91,000 pounds @ $5.10 per pound)
$ 464,100
526, 125
Direct labor (30,500 hours @ $17.25 per hour)
Overhead costs
Depreciation-Building
Depreciation-Machinery
Taxes and insurance
Supervisory salaries
Total costs
$ 30
34
37
$ 101
24,000
80,000
12,000
79,000
195,000
$ 555,000
$ 44,250
177,750
43,000
96,000
24,000
75,000
11,500
89,000
560, 500
$ 1,550,725
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