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Required information [The following information applies to the questions displayed below.] Antuan Company set the following...

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.) $ 20.00
Direct labor (1.7 hrs. @ $12.00 per hr.) 20.40
Overhead (1.7 hrs. @ $18.50 per hr.) 31.45
Total standard cost $ 71.85


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 30,000
Total variable overhead costs $ 135,000
Fixed overhead costs
Depreciation—Building 24,000
Depreciation—Machinery 70,000
Taxes and insurance 17,000
Supervision 225,750
Total fixed overhead costs 336,750
Total overhead costs $ 471,750


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

Direct materials (60,500 Ibs. @ $5.10 per lb.) $ 308,550
Direct labor (21,000 hrs. @ $12.20 per hr.) 256,200
Overhead costs
Indirect materials $ 41,150
Indirect labor 176,350
Power 17,250
Repairs and maintenance 34,500
Depreciation—Building 24,000
Depreciation—Machinery 94,500
Taxes and insurance 15,300
Supervision 225,750 628,800
Total costs $ 1,193,550

rev: 03_28_2018_QC_CS-122864

3. Compute the direct materials cost variance, including its price and quantity variances.

AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price

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