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 (5.0 Ibs. $6.00 per Ib.) $30.00 Direet labor (1.8 hre. $14.00 per hr.) Overhead (1.8 hrs. $18.50 per hr. Total standard co 25.20 33.30 $88.50 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 Indirect labor s 15,000 75,000 15,000 30,000 Power Repairs and maintenance Total variable overhead costs $135,000 Fixed overhead costs Depreciation-Duilding Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead costs 23,000 71,000 17,000 253,500 364,500 $499,500 Total overhead costs

Answer 1

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Actual Cost								Standard Cost
AQ	x	AP		AQ	x	SP		SQ	x	SP
76,000	x	6.20		76,000	x	$6.00		75,000	x	$6.00
	471200				456000				450000
			15200				6000
Direct materials price variance				15200	Unfavorable
Direct materials quantity variance				6000	Unfavorable
Total direct materials variance				21200	Unfavorable