Question

Required information Part 1 of 4 Required information The following information applies to the questions displayed below] Antuan Company set the following standard costs for one unit of its product $ 30 Direct materials (6 Ibs. @ $5 per Ib.) Direct labor (2 hrs. @ $17 per hr.) Overhead (2 hrs. @ $18.50 per hr.) Total standard cost 34 37 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 $360,000 Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 45,880 Indirect labor 180,000 Power 45,000 Repairs and maintenance 90,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 24,080 Depreciation-Machinery 80,000 Taxes and insurance 12,080 Supervision 79,000 Total fixed overhead costs Total overhead costs $555,000 The company incurred the following actual costs when it operated at 75% of capacity in October

Answer 1

Flexible Overhead Budgets
For Month Ended October 31
	Flexible Budget		Flexible Budget for
	Variable Amount per unit	Total Fixed Cost	65% of Capacity	75% of Capacity	85% of Capacity
Sales, units			13000	15000	17000
Variable overhead costs:
Ind. Mat.	3		39000	45000	51000
Ind. Lab.	12		156000	180000	204000
Power	3		39000	45000	51000
Rep & Maint.	6		78000	90000	102000
Total Variable Costs	24		312000	360000	408000
Fixed Overhead Costs:
Dep - Building		24000	24000	24000	24000
Dep - Machinery'		80000	80000	80000	80000
Taxes and Insur.		12000	12000	12000	12000
Supervision		79000	79000	79000	79000
Total Fixed Costs		195000	195000	195000	195000
Total Overhead costs			507000	555000	603000