Required information The following information applies to the questions displaye

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Required information The following information applies to the questions displayed below. Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. e $6.00 per Ib.) Direct labor (1.7 hrs. $13.00 per hr.) Overhead (1.7 hrs. $18.50 per 31.45 hr.) Total standard cost $24.00 $77.55 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 Indirect labor Power Repairs and maintenance Total variable overhead costs 15,000 75,000 15,000 30,000 $135,000 Fixed overhead costs Depreciation- Building Depreciation- Machinery Taxes and insurance Supervision Total fixed overhead costs 25,000 71,000 17,000 223,750 336,750 Total overhead costs $471,750 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,000 Ibs. e $6.10 per lb.) Direct labor (21,000 hrs. 8 $13.30 per hr.) Overhead costs $ 372,100 279,300 Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machiner Taxes and insurance Supervision $ 41,600 176,650 17,250 34,500 25,000 95,850 15,300 223,750 629,900 $1,281,300 Total costs

Explanation / Answer

Actual Cost 6300 -58500 Standard Cost AH x AR AH x SR SH x SR 21,000 x $13.30 21,000 x $13.00 25,500 x $13.00 $279,300 $273,000 $331,500 6300 52200 58500 Direct labor rate variance 6300 Unfavorable Direct labor efficiency variance 58500 Favorable Total direct labor variance 52200 Favorable

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