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Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $5.00 per pound) $15.00 Direct labor (1.6 hours $12.00 per hour) 19.20 Overhead (1.6 hours $18.50 per hour) 29.60 Standard cost per unit $63.80 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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 Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance 24,000 72,000 18,000 195,000 309,000 Total overhead costs $ 444,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 pounds @ $5.10 per pound) $ 232,050 Direct labor (23,000 hours $12.10 per hour) Supervisory salaries Total fixed overhead costs $ 15,000 75,000 15,000 30,000 135,000 Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation --Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $41,900 176,200 17,250 278,300 34,500 24,000 97,200 16,200 195,000 602,250 $1,112,600

Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $5.00 per pound) $15.00 Direct labor (1.6 hours $12.00 per hour) 19.20 Overhead (1.6 hours $18.50 per hour) 29.60 Standard cost per unit $63.80 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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 Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance 24,000 72,000 18,000 195,000 309,000 Total overhead costs $ 444,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 pounds @ $5.10 per pound) $ 232,050 Direct labor (23,000 hours $12.10 per hour) Supervisory salaries Total fixed overhead costs $ 15,000 75,000 15,000 30,000 135,000 Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation --Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $41,900 176,200 17,250 278,300 34,500 24,000 97,200 16,200 195,000 602,250 $1,112,600

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. For Month Ended October 31 Production (in units) Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead Fixed overhead costs Depreciation Building Depreciation Machinery Taxes and insurance Supervisory salaries Total fixed overhead Total overhead costs ANTUAN COMPANY Flexible Overhead Budgets Variable Amount Total Fixed per Unit Cost $ 0.00 $ Flexible Budget at Capacity Level of 65% 75% 85% $ 0 $ $ 41,900 176,200 17,250 34,500 0 $269,850 $ 0 $ 0 $ 0 0
Transcribed Image Text:Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. For Month Ended October 31 Production (in units) Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead Fixed overhead costs Depreciation Building Depreciation Machinery Taxes and insurance Supervisory salaries Total fixed overhead Total overhead costs ANTUAN COMPANY Flexible Overhead Budgets Variable Amount Total Fixed per Unit Cost $ 0.00 $ Flexible Budget at Capacity Level of 65% 75% 85% $ 0 $ $ 41,900 176,200 17,250 34,500 0 $269,850 $ 0 $ 0 $ 0 0
Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $5.00 per pound) $ 15.00 Direct labor (1.6 hours @ $12.00 per hour) 19.20 Overhead (1.6 hours @ $18.50 per hour) Standard cost per unit The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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 Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation Machinery Taxes and insurance $ 15,000 75,000 15,000 30,000 135,000 Supervisory salaries Total fixed overhead costs 24,000 72,000 18,000 195,000 309,000 Total overhead costs $ 444,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 pounds @ $5.10 per pound) $ 232,050 Direct labor (23,000 hours @ $12.10 per hour) 278,300 Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery 29.60 Taxes and insurance Supervisory salaries Total costs 63.80 $ $41,900 176,200 17,250 34,500 24,000 97,200 16,200 195,000 602,250 $ 1,112,600
Transcribed Image Text:Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $5.00 per pound) $ 15.00 Direct labor (1.6 hours @ $12.00 per hour) 19.20 Overhead (1.6 hours @ $18.50 per hour) Standard cost per unit The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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 Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation Machinery Taxes and insurance $ 15,000 75,000 15,000 30,000 135,000 Supervisory salaries Total fixed overhead costs 24,000 72,000 18,000 195,000 309,000 Total overhead costs $ 444,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 pounds @ $5.10 per pound) $ 232,050 Direct labor (23,000 hours @ $12.10 per hour) 278,300 Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery 29.60 Taxes and insurance Supervisory salaries Total costs 63.80 $ $41,900 176,200 17,250 34,500 24,000 97,200 16,200 195,000 602,250 $ 1,112,600
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