Antuan Company set the following standard costs for one unit of its product. Dir

Question

Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs.$5.00 per Ib.) Direct labor (1.7 hrs. $13.00 per hr.) Overhead (1.7 hrs.@$18.50 per hr.) Total standard cost $20.00 22.10 31.45 $73.55 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. grooveHistory:65eb1049-30ac-415f-81eb-0900dd60f Overhead Budget (75% Capacity) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance Total variable overhead costs $. 15,000 75,000 15,000 30,000 $135,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead costs 25,000 72,000 16,000 223,750 336,750 $471,750 Total overhead costs

Explanation / Answer

4) Direct labour variance :

Actual cost Standard cost AH AR AH*AR AH SR AH*SR SH SR SH*SR 28000 13.30 372400 28000 13 364000 34000 13 442000 8400 78000 Labour rate variance 8400 Unfavourable Labour effiiciency variance 78000 Favourable Labour cost variance 69600 Favourable

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---