Question

(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. @ $4.00 per Ib.) Direct labor (2.0 hrs. @ $12.00 per hr.) Overhead (2.0 hrs. @ $18.50 per hr.) Total standard cost $16.00 24.00 37.00 $77.00 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. $135,000 Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 71,000 Taxes and insurance 16,000 Supervision 309,000 Total fixed overhead costs Total overhead costs 420,000 $555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 248,050 248,000 Direct materials (60,500 Ibs. @ $4.10 per lb.) Direct labor (20,000 hrs. @ $12.40 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,000 176,300 17,250 34,500 24,000 95,850 14,400 309,000 712,300 $1,208,350

Says something is missing from the first chart but I can't figure out what.

Answer 1

Solution 1&2:

Antuan company
Flexible Overhead Budget
For month ended Oct 31
Particulars	Flexible Budget		Flexible Budget for
	Variable amount per unit	Total fixed cost	65% of capacity	75% of capacity	85% of capacity
Sales (In units)			13000	15000	17000
Variable overhead costs:
Indirect materials	$1.00		$13,000.00	$15,000.00	$17,000.00
Indirect labor	$5.00		$65,000.00	$75,000.00	$85,000.00
Power	$1.00		$13,000.00	$15,000.00	$17,000.00
Repairs and maintenance	$2.00		$26,000.00	$30,000.00	$34,000.00
Total variable costs	$9.00		$117,000.00	$135,000.00	$153,000.00
Fixed overhead costs:
Depreciation - Building		$24,000.00	$24,000.00	$24,000.00	$24,000.00
Depreciation - Machinery		$71,000.00	$71,000.00	$71,000.00	$71,000.00
Taxes and Insurance		$16,000.00	$16,000.00	$16,000.00	$16,000.00
Supervision		$309,000.00	$309,000.00	$309,000.00	$309,000.00
Total fixed costs		$420,000.00	$420,000.00	$420,000.00	$420,000.00
Total overhead costs			$537,000.00	$555,000.00	$573,000.00

Solution 3:

Direct Material Cost Variance
Actual Cost				Standard cost for actual quantity				Standard Cost
AQ *	AP =			AQ *	SP =			SQ *	SP =
60500	$4.10	$248,050.00		60500	$4.00	$242,000.00		60000	$4.00	$240,000.00
			$6,050 U				$2,000 U
			Direct Material Price Variance				Direct Material Qty variance
Direct material price variance				$6,050.00	U
Direct material quantity variance				$2,000.00	U
Direct material cost variance				$8,050.00	U

Solution 4:

Direct Labor Cost Variance
Actual Cost				Standard cost for actual quantity				Standard Cost
AQ *	AP =			AQ *	SP =			SQ *	SP =
20000	$12.40	$248,000.00		20000	$12.00	$240,000.00		30000	$12.00	$360,000.00
			$8,000 U				$120,000 F
			Direct Labor rate Variance				Direct Labor Efficiency Variance
Direct Labor Rate variance				$8,000.00	U
Direct Labor Efficiency variance				$120,000.00	F
Direct labor cost variance				$112,000.00	F

Solution 5:

Antuan Company
Overhead variance Report
For the month ended October 31
Expected production volume	75% of capacity
Production level achieved	75% of capacity
Volume variance	$0.00
Controllable variance	Flexible budget	Actual results	Variances	Fav/Unfav.
Variable overhead costs:
Indirect materials	$15,000.00	$41,000.00	$26,000.00	Unfavorable
Indirect labor	$75,000.00	$176,300.00	$101,300.00	Unfavorable
Power	$15,000.00	$17,250.00	$2,250.00	Unfavorable
Repairs and maintenance	$30,000.00	$34,500.00	$4,500.00	Unfavorable
Total variable costs	$135,000.00	$269,050.00	$134,050.00	Unfavorable
Fixed overhead costs:
Depreciation - Building	$24,000.00	$24,000.00	$0.00
Depreciation - Machinery	$71,000.00	$95,850.00	$24,850.00	Unfavorable
Taxes and Insurance	$16,000.00	$14,400.00	$1,600.00	Favorable
Supervision	$309,000.00	$309,000.00	$0.00
Total fixed costs	$420,000.00	$443,250.00	$23,250.00	Unfavorable
Total overhead costs	$555,000.00	$712,300.00	$157,300.00	Unfavorable