Question

Antuan Company set the following standard costs for one unit of its product $15.00 17.60 29.60 Direct materials (3.0 Ibs.e $5.00 per Ib.) Direct labor (1.6 hrs. $11.00 per hr.) Overhead (1.6 hrs. e $18.50 per hr.) $62.20 Total standard cost 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 75,000 Indirect labor 15,000 30,000 Power Repairs and maintenance Total variable overhead costs Pixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead costs Total overhead costs $135,000 24,000 71,000 17,000 197,000 309,000 $444,000

Answer 1

Direct Material Cost, Price and Quantity Variance Actual Cost Standard Cost AQ X АР AQ X SP SQ х SP 5.20 46000 5.00 45000 5.00 46000 X X х 225000 230000 239200 9200 5000 Direct Material Price Varaince Direct Material Quantity Varaince Total Direct Material Varaince Factory Capacity 20,000 Units 75% Capacity = 20,000*75% Standard Quantity = SQ For 1 Units * Total Prodcued = (1500*3) 45000 9200 Unfavorable 5000 Unfavorable Unfavorable 14200 15000