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. @ $6.00 per Ib.) Direct labor (1.9 hrs. @ $13.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) Total standard cost $24.00 24.70 35.15 $83.85 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 labor 75,000 Power 15,000 Repairs and maintenance 45,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 71,000 Taxes and insurance 17,000 Supervision 265, 250 Total fixed overhead costs Total overhead costs $150,000 377,250 $527,250

Answer 1

4.Labor variances Actual Cost Qty X 21,000 X 279,300.00 unit cost 13.30 Flexible Budget Qty X unit cost 21,000 x 273000 13 Standard Cost | Qty X unit cost 28,500 x 370500 97500 6300 Labor rate variance Labor efficiency variance Total Labor variance 6300 Unfavorable 97500 Favorable 91200 Favorable T T T T

4.Labor variances Actual Cost Qty X 21,000 X 279,300.00 unit cost 13.30 Flexible Budget Qty X unit cost 21,000 x 273000 13 Standard Cost | Qty X unit cost 28,500 x 370500 97500 6300 Labor rate variance Labor efficiency variance Total Labor variance 6300 Unfavorable 97500 Favorable 91200 Favorable T T T T