2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selectingfavorable, unfavorable, or no variance.)Actual Cost00$000$$Standard Cost Antuan Company set the following standard costs per unit for its product.Direct materials (6 pounds @ $5 per pound)$ 30Direct labor (2 hours @ $17 per hour)34Overhead (2 hours @ $18.50 per hour).37Standard cost per unit$ 101The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory'scapacity of 20,000 units per month. Following are the company's budgeted overhead costs per month at the 75% capacitylevel.Overhead Budget (75% Capacity)Variable overhead costsIndirect materials.$ 45,000Indirect labor180,000Power45,000Maintenance90,000360,000Total variable overhead costsFixed overhead costs24,000Depreciation-BuildingDepreciation-Machinery80,000Taxes and insurance12,000Supervisory salaries.79,000Total fixed overhead costs195,000Total overhead costs$ 555,000The company incurred the following actual costs when it operated at 75% of capacity in October.Direct materials (91,000 pounds @ $5.10 per pound)$ 464,100526,125Direct labor (30,500 hours @ $17.25 per hour)Overhead costsIndirect materials$ 44,250Indirect labor177,750Power43,000Maintenance96,00024,000Depreciation-BuildingDepreciation-Machinery75,00011,500Taxes and insuranceSupervisory salaries.89,000560,500Total costs$ 1,550,725

Name: 2. Compute the direct materials variance, including its price and qua
Uploaded: 2024-03-20T06:33:06.000Z
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Description: 2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selectingfavorable, unfavorable, or no variance.)Actual Cost00$000$$Standard Cost Antuan Company set the following standar