Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $6.00 per pound) Direct labor (1.7 hours @ $10.00 per hour) Overhead (1.7 hours @ $18.50 per hour) Standard cost per unit 18.00 17.00 31.45 $ 66.45 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 $ 15,000 75,000 Power 15,000 Maintenance 45,000 Total variable overhead costs 150,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery 23,000 71,000 Taxes and insurance Supervisory salaries 17,000 210,750 321,750 $ 471,750 Total fixed overhead costs Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,500 pounds @ $6.20 per pound) Direct labor (20,000 hours @ $10.30 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 288,300 206,000 $ 42,000 176,750 17,250 51,750 23,000 95,850 15,300 210,750 632,650 $ 1,126,950 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. ANTUAN COMPANY Flexible Budget at Capacity Level of Flexible Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost 65% Production (in units) Variable overhead costs Fixed overhead costs Total overhead costs 75% 85%

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Antuan Company set the following standard costs per unit for its product.
Direct materials (3.0 pounds @ $6.00 per pound)
Direct labor (1.7 hours @ $10.00 per hour)
Overhead (1.7 hours @ $18.50 per hour)
Standard cost per unit
18.00
17.00
31.45
$ 66.45
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
$ 15,000
75,000
Power
15,000
Maintenance
45,000
Total variable overhead costs
150,000
Fixed overhead costs
Depreciation-Building
Depreciation-Machinery
23,000
71,000
Taxes and insurance
Supervisory salaries
17,000
210,750
321,750
$ 471,750
Total fixed overhead costs
Total overhead costs
The company incurred the following actual costs when it operated at 75% of capacity in October.
Direct materials (46,500 pounds @ $6.20 per pound)
Direct labor (20,000 hours @ $10.30 per hour)
Overhead costs
Indirect materials
Indirect labor
Power
Maintenance
Depreciation-Building
Depreciation-Machinery
Taxes and insurance
Supervisory salaries
Total costs
$ 288,300
206,000
$ 42,000
176,750
17,250
51,750
23,000
95,850
15,300
210,750
632,650
$ 1,126,950
Required:
1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity
levels.
ANTUAN COMPANY
Flexible Budget at Capacity Level of
Flexible Overhead Budgets
For Month Ended October 31
Variable Amount Total Fixed
per Unit
Cost
65%
Production (in units)
Variable overhead costs
Fixed overhead costs
Total overhead costs
75%
85%
Transcribed Image Text:Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $6.00 per pound) Direct labor (1.7 hours @ $10.00 per hour) Overhead (1.7 hours @ $18.50 per hour) Standard cost per unit 18.00 17.00 31.45 $ 66.45 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 $ 15,000 75,000 Power 15,000 Maintenance 45,000 Total variable overhead costs 150,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery 23,000 71,000 Taxes and insurance Supervisory salaries 17,000 210,750 321,750 $ 471,750 Total fixed overhead costs Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,500 pounds @ $6.20 per pound) Direct labor (20,000 hours @ $10.30 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 288,300 206,000 $ 42,000 176,750 17,250 51,750 23,000 95,850 15,300 210,750 632,650 $ 1,126,950 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. ANTUAN COMPANY Flexible Budget at Capacity Level of Flexible Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost 65% Production (in units) Variable overhead costs Fixed overhead costs Total overhead costs 75% 85%
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