[The following information applies to the questions displayed below.]   Antuan Company set the following standard costs for one unit of its product.         Direct materials (3.0 Ibs. @ $5.00 per Ib.) $ 15.00 Direct labor (2.0 hrs. @ $12.00 per hr.)   24.00 Overhead (2.0 hrs. @ $18.50 per hr.)   37.00 Total standard cost $ 76.00   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.   Overhead Budget (75% Capacity) Variable overhead costs           Indirect materials $ 15,000       Indirect labor   90,000       Power   15,000       Repairs and maintenance   45,000       Total variable overhead costs       $ 165,000 Fixed overhead costs           Depreciation—Building   24,000       Depreciation—Machinery   70,000       Taxes and insurance   17,000       Supervision   279,000       Total fixed overhead costs         390,000 Total overhead costs       $ 555,000   The company incurred the following actual costs when it operated at 75% of capacity in October.               Direct materials (45,500 Ibs. @ $5.20 per lb.)       $ 236,600 Direct labor (22,000 hrs. @ $12.30 per hr.)         270,600 Overhead costs           Indirect materials $ 41,100       Indirect labor   176,400       Power   17,250       Repairs and maintenance   51,750       Depreciation—Building   24,000       Depreciation—Machinery   94,500       Taxes and insurance   15,300       Supervision   279,000     699,300 Total costs       $ 1,206,500   rev: 04_27_2020_QC_CS-209738   3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting  for favorable, unfavorable, and No variance.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
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 (3.0 Ibs. @ $5.00 per Ib.) $ 15.00
Direct labor (2.0 hrs. @ $12.00 per hr.)   24.00
Overhead (2.0 hrs. @ $18.50 per hr.)   37.00
Total standard cost $ 76.00
 


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.
 

Overhead Budget (75% Capacity)
Variable overhead costs          
Indirect materials $ 15,000      
Indirect labor   90,000      
Power  

15,000

     
Repairs and maintenance   45,000      
Total variable overhead costs       $ 165,000
Fixed overhead costs          
Depreciation—Building   24,000      
Depreciation—Machinery   70,000      
Taxes and insurance   17,000      
Supervision   279,000      
Total fixed overhead costs         390,000
Total overhead costs       $ 555,000
 


The company incurred the following actual costs when it operated at 75% of capacity in October.
 

           
Direct materials (45,500 Ibs. @ $5.20 per lb.)       $ 236,600
Direct labor (22,000 hrs. @ $12.30 per hr.)         270,600
Overhead costs          
Indirect materials $ 41,100      
Indirect labor   176,400      
Power   17,250      
Repairs and maintenance   51,750      
Depreciation—Building   24,000      
Depreciation—Machinery   94,500      
Taxes and insurance   15,300      
Supervision   279,000     699,300
Total costs       $ 1,206,500
 

rev: 04_27_2020_QC_CS-209738

 

3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting  for favorable, unfavorable, and No variance.)

Problem 23-3A Part 3
B. Compute the direct materlals cost varlance, Including Its price and quantity varlances. (Indicate the effect of each varlance by
selecting for favorable, unfavorable, and No varlance.)
Actual Cost
Standard Cost
< Prev
15.
6 7
of 8
Next >
7167.jpg
143996935 18383...jpg
here to search
PriSc
Ins
F11
F12
Transcribed Image Text:Problem 23-3A Part 3 B. Compute the direct materlals cost varlance, Including Its price and quantity varlances. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and No varlance.) Actual Cost Standard Cost < Prev 15. 6 7 of 8 Next > 7167.jpg 143996935 18383...jpg here to search PriSc Ins F11 F12
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education