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 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,500 pounds @ $5.10 per pound) Direct labor (19,000 hours @ $14.20 per hour) Overhead costs $ 237, 150 269, 800 Depreciation-Building $ 15,000 75,000 15,000 30,000 135,000 Depreciation Machinery Taxes and insurance Supervisory salaries Total costs 24,000 71,000 18,000 251, 500 364,500 $ 499, 500 $ 41,700 176, 950 17,250 34,500 24,000 95,850 16, 200 251, 500 657, 950 $1,164, 900
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
6.2
Find the budgeted flexible
Find the standard overhead applied
Fill out the variances column
Thank you
![Antuan Company set the following standard costs per unit for its product.
Direct materials (3.0 pounds @ $5.00 per pound)
Direct labor (1.8 hours @ $14.00 per hour)
Overhead (1.8 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
The company incurred the following actual costs when it operated at 75% of capacity in October.
Direct materials (46,500 pounds @ $5.10 per pound)
Direct labor (19,000 hours @ $14.20 per hour)
$ 237, 150
269, 800
Overhead costs
Dep eciation-Building
Depreciation-Machinery
$ 15,000
75,000
15,000
30,000
135,000
Taxes and insurance
Supervisory salaries.
Total costs
$15.00
25.20
33.30
$ 73.50
24,000
71,000
18,000
251, 500
364,500
$499, 500
$ 41,700
176,950
17,250
34,500
24,000
95, 850
16, 200
251, 500
657, 950
$ 1,164,900](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1799000-33ab-4b28-9bb2-f03cfa8defbf%2F052024c0-2077-4b03-8e94-52debb6f6c55%2Fyi9pg7d_processed.png&w=3840&q=75)
![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
75% of capacity
75% of capacity
No variance
Flexible
Budget
$
$
ANTUAN COMPANY
Overhead Variance Report
For Month Ended October 31
15,000
75,000
15,000
30,000
135,000
24,000
71,000
Answer is not complete.
18,000
251,500
Actual
Results
$ 41,700 $ 26,700
176,950✔
101,950
17,250✔
2,250
34,500
270,400
Variances
24,000
95,850✔ (24,850)
16,200✔
1,800
0
251,500
364,500
499,500 $ 657,950
387,550 $ (23,050)
$
Favorable/Unfavorable
0✔ No variance
Unfavorable
Favorable
No variance
0
Unfavorable
Unfavorable
Unfavorable
Unfavorable
Unfavorable
Unfavorable
Unfavorable
No variance
✔](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1799000-33ab-4b28-9bb2-f03cfa8defbf%2F052024c0-2077-4b03-8e94-52debb6f6c55%2Fh6ctx1t_processed.png&w=3840&q=75)
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