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Business
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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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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6.2 

Find the budgeted flexible overhead 

Find the standard overhead applied 

 

Fill out the variances column

 

Thank you

**Antuan Company: Standard and Actual Costs Analysis** Antuan Company has established the following standard costs per unit for its product: - **Direct Materials**: 3.0 pounds at $5.00 per pound = $15.00 - **Direct Labor**: 1.8 hours at $14.00 per hour = $25.20 - **Overhead**: 1.8 hours at $18.50 per hour = $33.30 **Total Standard Cost per Unit**: $73.50 The standard overhead rate of $18.50 per direct labor hour is based on an activity level of 75% of the factory's capacity of 20,000 units per month. The budgeted overhead costs at this 75% capacity level are detailed as follows: **Overhead Budget (75% Capacity)** - **Variable Overhead Costs**: - Indirect materials: $15,000 - Indirect labor: $75,000 - Power: $15,000 - Maintenance: $30,000 - **Total Variable Overhead Costs**: $135,000 - **Fixed Overhead Costs**: - Depreciation—Building: $24,000 - Depreciation—Machinery: $71,000 - Taxes and insurance: $18,000 - Supervisory salaries: $251,500 - **Total Fixed Overhead Costs**: $364,500 **Total Overhead Costs**: $499,500 In October, the company operated at 75% capacity and incurred the following actual costs: - **Direct Materials**: (46,500 pounds at $5.10 per pound) = $237,150 - **Direct Labor**: (19,000 hours at $14.20 per hour) = $269,800 **Overhead Costs**: - Indirect materials: $41,700 - Indirect labor: $176,950 - Power: $17,250 - Maintenance: $34,500 - Depreciation—Building: $24,000 - Depreciation—Machinery: $95,850 - Taxes and insurance: $16,200 - Supervisory salaries: $251,500 **Total Overhead Costs (Actual)**: $657,950 **Total Costs Incurred**: $
Transcribed Image Text:**Antuan Company: Standard and Actual Costs Analysis** Antuan Company has established the following standard costs per unit for its product: - **Direct Materials**: 3.0 pounds at $5.00 per pound = $15.00 - **Direct Labor**: 1.8 hours at $14.00 per hour = $25.20 - **Overhead**: 1.8 hours at $18.50 per hour = $33.30 **Total Standard Cost per Unit**: $73.50 The standard overhead rate of $18.50 per direct labor hour is based on an activity level of 75% of the factory's capacity of 20,000 units per month. The budgeted overhead costs at this 75% capacity level are detailed as follows: **Overhead Budget (75% Capacity)** - **Variable Overhead Costs**: - Indirect materials: $15,000 - Indirect labor: $75,000 - Power: $15,000 - Maintenance: $30,000 - **Total Variable Overhead Costs**: $135,000 - **Fixed Overhead Costs**: - Depreciation—Building: $24,000 - Depreciation—Machinery: $71,000 - Taxes and insurance: $18,000 - Supervisory salaries: $251,500 - **Total Fixed Overhead Costs**: $364,500 **Total Overhead Costs**: $499,500 In October, the company operated at 75% capacity and incurred the following actual costs: - **Direct Materials**: (46,500 pounds at $5.10 per pound) = $237,150 - **Direct Labor**: (19,000 hours at $14.20 per hour) = $269,800 **Overhead Costs**: - Indirect materials: $41,700 - Indirect labor: $176,950 - Power: $17,250 - Maintenance: $34,500 - Depreciation—Building: $24,000 - Depreciation—Machinery: $95,850 - Taxes and insurance: $16,200 - Supervisory salaries: $251,500 **Total Overhead Costs (Actual)**: $657,950 **Total Costs Incurred**: $
# Antuan Company Overhead Variance Report ## For Month Ended October 31 ### Overview This report outlines the overhead cost variances for Antuan Company, analyzing the differences between the flexible budget and actual results for individual overhead items. The aim is to determine whether these variances are favorable or unfavorable. ### Key Components - **Expected Production Volume**: - 75% of capacity - **Production Level Achieved**: - 75% of capacity - **Volume Variance**: - No variance ### Detailed Overhead Costs #### Variable Overhead Costs 1. **Indirect Materials**: - Flexible Budget: $15,000 - Actual Results: $41,700 - Variance: $26,700 (Unfavorable) 2. **Indirect Labor**: - Flexible Budget: $75,000 - Actual Results: $176,950 - Variance: $101,950 (Unfavorable) 3. **Power**: - Flexible Budget: $15,000 - Actual Results: $17,250 - Variance: $2,250 (Unfavorable) 4. **Maintenance**: - Flexible Budget: $30,000 - Actual Results: $34,500 - Variance: $4,500 (Unfavorable) - **Total Variable Overhead Costs**: - Flexible Budget: $135,000 - Actual Results: $270,400 - Variance: $135,400 (Unfavorable) #### Fixed Overhead Costs 1. **Depreciation—Building**: - Flexible Budget: $24,000 - Actual Results: $24,000 - Variance: $0 (No variance) 2. **Depreciation—Machinery**: - Flexible Budget: $71,000 - Actual Results: $95,850 - Variance: $24,850 (Unfavorable) 3. **Taxes and Insurance**: - Flexible Budget: $18,000 - Actual Results: $16,200 - Variance: $1,800 (Favorable) 4. **Supervisory Salaries**: - Flexible Budget: $251,500 - Actual Results: $251
Transcribed Image Text:# Antuan Company Overhead Variance Report ## For Month Ended October 31 ### Overview This report outlines the overhead cost variances for Antuan Company, analyzing the differences between the flexible budget and actual results for individual overhead items. The aim is to determine whether these variances are favorable or unfavorable. ### Key Components - **Expected Production Volume**: - 75% of capacity - **Production Level Achieved**: - 75% of capacity - **Volume Variance**: - No variance ### Detailed Overhead Costs #### Variable Overhead Costs 1. **Indirect Materials**: - Flexible Budget: $15,000 - Actual Results: $41,700 - Variance: $26,700 (Unfavorable) 2. **Indirect Labor**: - Flexible Budget: $75,000 - Actual Results: $176,950 - Variance: $101,950 (Unfavorable) 3. **Power**: - Flexible Budget: $15,000 - Actual Results: $17,250 - Variance: $2,250 (Unfavorable) 4. **Maintenance**: - Flexible Budget: $30,000 - Actual Results: $34,500 - Variance: $4,500 (Unfavorable) - **Total Variable Overhead Costs**: - Flexible Budget: $135,000 - Actual Results: $270,400 - Variance: $135,400 (Unfavorable) #### Fixed Overhead Costs 1. **Depreciation—Building**: - Flexible Budget: $24,000 - Actual Results: $24,000 - Variance: $0 (No variance) 2. **Depreciation—Machinery**: - Flexible Budget: $71,000 - Actual Results: $95,850 - Variance: $24,850 (Unfavorable) 3. **Taxes and Insurance**: - Flexible Budget: $18,000 - Actual Results: $16,200 - Variance: $1,800 (Favorable) 4. **Supervisory Salaries**: - Flexible Budget: $251,500 - Actual Results: $251
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