Question

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. @ $5.00 per Ib.) Direct labor (1.8 hrs. @ $10.00 per hr.) Overhead (1.8 hrs. @ $18.50 per hr.) Total standard cost $ 20.00 18.00 33.30 $71.30 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 (758 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 18,000 Supervision 251,500 Total Fixed overhead costs Total overhead costs $135,000 364,500 $499,500 The company incurred the following actual costs when it operated at 75% of capacity in October $ 313,650 202,000 Direct materials (61,500 lbs. @ $5.10 per lb.) Direct labor (20,000 hrs. @ $10.10 per hr.) Overhead costs Indirect materials Indirect labor $ 41,200 176,400 17 25

Answer 1

Book1 - Microsoft Excel Ca Home Insert Page Layout Formulas Data Review View Developer (?) X Σ AutoSum και Calibri 11 AA Wrap Text General Fill - * Cut EB Copy Paste Format Painter Clipboard BI I U Merge & Center - % .00 .00.0 Insert Delete Format Conditional Format Cell Formatting as Table Styles Styles 2 Clear - Sort & Find & Filter - Select Editing Font Alignment Number Cells 161 foc А B с D E F G H 1 39 40 41 Production 42 43 Cost per unit of each variable item Total Cost $ 15,000.00 $ 75,000.00 $ 15,000.00 $ 30,000.00 $ 1,35,000.00 Indirect Material Indirect Labor Power Repairs and Maintenance Total Variable Overhead cost Cost per unit 15000 $ 15000 $ 15000 $ 15000 $ 15000 $ 44 1.00 5.00 1.00 2.00 9.00 45 46 47 48 49 20000 units 20000*75%=15000 units 100% Capacity 75% Capacity 50 51 52 53 54 55 56 57 58 59 60 61 O 62 Sheet1 Sheet2 Sheet3 IIII Ready BED 100% Type here to search x ENG 11:19 01-08-2020 D

Book1 - Microsoft Excel Х Cla Home Insert Page Layout Formulas Data Review View Developer (?) X Σ AutoSum και Calibri 11 AA Wrap Text General Fill - * Cut EB Copy Paste Format Painter Clipboard BI I U Merge & Center - % .00 .00.0 Insert Delete Format Conditional Format Cell Formatting as Table - Styles Styles 2 Clear - Sort & Find & Filter Select Font Alignment Number Cells Editing 161 foc А B E F G H 1 63 64 65 C D Antuan Company Flexible Budget For the month ended October 31st (A) (B) Variable cost per unit Fixed Cost 66 Sales Units*(A)+(B) Sales Units* (A)+(B) Sales Units* (A)+(B) 67 65% Capacity 75% Capacity 85% Capacity 13000 15000 68 17000 69 70 71 72 $ $ $ $ $ $ 73 1.00 5.00 1.00 2.00 9.00 13,000.00 $ 65,000.00 $ 13,000.00 $ 26,000.00 $ 1,17,000.00 $ Sales in Units=(15000*65%/75%),(15000*85%/75%) Factory Overhead Variable cost Indirect Material Indirect Labor Power Repairs and Maintenance Total Variable Overhead cost Fixed Cost per month Depreciation - Building Depreciation Machinery Taxes and Insurance Supervision Total Fixed Overhead cost Total Factory Overhead 15,000.00 $ 75,000.00 $ 15,000.00 $ 30,000.00 $ 1,35,000.00 $ 17,000.00 85,000.00 17,000.00 34,000.00 1,53,000.00 74 $ $ $ 75 $ 76 77 78 79 $ $ $ $ $ 24,000.00 $ 71,000.00 $ 18,000.00 $ 2,51,500.00 $ 3,64,500.00 $ $ 24,000.00 $ 71,000.00 $ 18,000.00 $ 2,51,500.00 $ 3,64,500.00 $ 4,81,500.00 $ 24,000.00 $ 71,000.00 $ 18,000.00 $ 2,51,500.00 $ 3,64,500.00 $ 4,99,500.00 $ 24,000.00 71,000.00 18,000.00 2,51,500.00 3,64,500.00 5,17,500.00 80 81 82 83 84 85 Sheet1 Sheet2 Sheet3 IIII Ready HE 100% + Type here to search x ENG 11:19 01-08-2020 D

Book1 - Microsoft Excel Х Cla Home Insert Page Layout Formulas Data Review View Developer (?) X Σ AutoSum και * Cut EB Copy Calibri 11 AA Wrap Text General Fill - Paste B I U Merge & Center - % .00 .00.0 Insert Delete Format Format Painter Conditional Format Cell Formatting as Table Styles Styles 2 Clear - Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells 161 foc А C D E F G H 1 87 3) 88 89 B Direct Material cost Variance=AQ*AP-SQ-*SP AQ= AP= SQ=(15000*4) SP= Direct Material cost Variance (61500*$51.0-60000*$5)= 90 61500 5.1 60000 5.00 13,650.00 (U) 91 $ $ 92 93 94 Direct Material Price Variance=AQ*(AP-SP)=61500*($5.10-$5) $ 6,150.00 (U) 95 96 Direct Material Quantity Variance=SP*(AQ-SQ)=$5*(61500-60000) $ 7,500.00 (U) 97 98 4) 99 100 101 Direct Labor cost Variance=AH*AR-SH*SR AH= AR= SH=(15000*1.8) SR= Direct Labor cost Variance=AH*AR-SH*SR=20000*$10.10-27000*10 102 20000 10.1 27000 10.00 68,000.00 (F) 103 $ $ 104 105 106 Direct Labor Rate Variance=AH*(AR-SR)=20000*($10.10-$10) $ 2,000.00 (U) 107 108 $ 70,000.00 (F) Antuan Company Direct Labor Efficiency Variance=SR*(AH-SH)=$10*(20000-27000) 109 110 Sheet1 Sheet2 Sheet3 Ready MI Type here to search IIII HE 100% - + x ENG 11:20 01-08-2020 D

Book1 - Microsoft Excel Cla Home Insert Page Layout Formulas Data Review View Developer (?) X Σ AutoSum και Calibri 11 AA Wrap Text General Fill - * Cut EB Copy Paste Format Painter Clipboard B I U Merge & Center - % .00 .00.0 Insert Delete Format Conditional Format Cell Formatting as Table Styles Styles 2 Clear - Sort & Find & Filter - Select Editing Font Alignment Number Cells 161 foc D E F G H 1 C 70,000.00 (F) $ Antuan Company Overhead Variance Report For the month ended October 31st (A) (B) Flexible Budget Actual Budget (A)-(B) Variance A B 108 Direct Labor Efficiency Variance=SR*(AH-SH)=$10*(20000-27000) 109 110 1115) 112 113 At 75% Capacity Level - 15000 units 114 115 Variable Cost 116 Indirect Material 117 Indirect Labor 118 Power 119 Repairs and Maintenance 120 Total Variable Overhead cost 121 Fixed Cost 122 Depreciation - Building 123 Depreciation-Machinery 124 Taxes and Insurance 125 Supervision 126 Total Fixed Overhead cost 127 Total Factory Overhead 128 129 When Actual Expenses > Flexible Budget Expenses 130 When Actual Expenses <Flexible Budget Expenses 131 Sheet1 Sheet2 Sheet3 Ready MI 15,000.00 75,000.00 15,000.00 30,000.00 1,35,000.00 41200 $ 176400 $ 17250 $ 34500 $ 269350 $ 26,200.00 (0) 1,01,400.00 (0) 2,250.00 (U) 4,500.00 (U) 1,34,350.00 (U) $ $ $ $ $ $ $ $ $ $ $ $ 24,850.00 (0) 1,800.00 (F) 24,000.00 71,000.00 18,000.00 2,51,500.00 3,64,500.00 4,99,500.00 $ 24000 95850 $ 16200 $ 2515000 $ 387550 $ 6,56,900.00 $ 23,050.00 (U) 1,57,400.00 (0) Unfavorable variance Favorable Variance IIII HE 100% - U Type here to search x ENG 11:20 01-08-2020 D