Antuan Company set the following standard costs for one unit of its product. Dir

Question

Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. 8 $6.00 per Ib.) Direct labor (1.7 hrs. e $13.00 per hr.) Overhead (1.7 hrs. $18.50 per 31.45 hr.) Total standard cost $24.00 22.10 $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 17,000 Supervision Total fixed overhead costs 25,000 71,000 223,750 336,750 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. $6.10 per 1b.) Direct labor (21,000 hrs. e $13.30 per hr.) Overhead costs $ 372,100 279,300 Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery 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

Schedule :

Actual Cost Standard cost AH AR AH*AR AH SR AH*SR SH SR SH*SR 21000 13.30 279300 21000 13 273000 25500 13 331500 6300 58500 Direct labour rate variance 6300 U Direct labour efficiency variance 58500 F Direct labour cost variance 52200 F

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