[The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. @ $5.00 per Ib.) $ 15.00...






[The following information applies to the questions displayed below.]


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

































Direct materials (3.0 Ibs. @ $5.00 per Ib.)$15.00
Direct labor (2.0 hrs. @ $12.00 per hr.)24.00
Overhead (2.0 hrs. @ $18.50 per hr.)37.00
Total standard cost$76.00



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$15,000
Indirect labor90,000
Power

15,000


Repairs and maintenance45,000
Total variable overhead costs$165,000
Fixed overhead costs
Depreciation—Building24,000
Depreciation—Machinery70,000
Taxes and insurance17,000
Supervision279,000
Total fixed overhead costs390,000
Total overhead costs$555,000



The company incurred the following actual costs when it operated at 75% of capacity in October.
















































































































Direct materials (45,500 Ibs. @ $5.20 per lb.)$236,600
Direct labor (22,000 hrs. @ $12.30 per hr.)270,600
Overhead costs
Indirect materials$41,100
Indirect labor176,400
Power17,250
Repairs and maintenance51,750
Depreciation—Building24,000
Depreciation—Machinery94,500
Taxes and insurance15,300
Supervision279,000699,300
Total costs$1,206,500

rev: 04_27_2020_QC_CS-209738








3. Compute the direct materials cost variance, including its price and quantity variances.(Indicate the effect of each variance by selecting  for favorable, unfavorable, and No variance.)




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Extracted text: Problem 23-3A Part 3 B. Compute the direct materlals cost varlance, Including Its price and quantity varlances. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and No varlance.) Actual Cost Standard Cost < prev="" 15.="" 6="" 7="" of="" 8="" next=""> 7167.jpg 143996935 18383...jpg here to search PriSc Ins F11 F12
Jun 10, 2022
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