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 Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost Production (in units) Variable overhead costs Fixed overhead costs Total overhead costs $ 0 $ Flexible Budget at Capacity Level of 65% 75% 85% $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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[The following information applies to the questions displayed below.j
Antuan Company set the following standard costs per unit for its product.
Direct materials (6 pounds @ $5 per pound)
Direct labor (2 hours @ $17 per hour)
Overhead (2 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
Supervisory salaries
Total fixed overhead costs
Total overhead costs
Indirect materials
Indirect labor
Power
Maintenance
$ 45,000
180,000
45,000
90,000
360,000
Depreciation-Building
Depreciation-Machinery
Taxes and insurance
Supervisory salaries.
Total costs
$ 30
34
37
$ 101
24,000
80,000
12,000
79,000
195,000
$ 555,000
The company incurred the following actual costs when it operated at 75% of capacity in October.
Direct materials (91,000 pounds @ $5.10 per pound)
Direct labor (30,500 hours @ $17.25 per hour)
$ 464,100
526, 125
Overhead costs
$ 44,250
177,750
43,000
96,000
24,000
75,000
11,500
89,000
560,500
$ 1,550,725
Transcribed Image Text:[The following information applies to the questions displayed below.j Antuan Company set the following standard costs per unit for its product. Direct materials (6 pounds @ $5 per pound) Direct labor (2 hours @ $17 per hour) Overhead (2 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 Supervisory salaries Total fixed overhead costs Total overhead costs Indirect materials Indirect labor Power Maintenance $ 45,000 180,000 45,000 90,000 360,000 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries. Total costs $ 30 34 37 $ 101 24,000 80,000 12,000 79,000 195,000 $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (91,000 pounds @ $5.10 per pound) Direct labor (30,500 hours @ $17.25 per hour) $ 464,100 526, 125 Overhead costs $ 44,250 177,750 43,000 96,000 24,000 75,000 11,500 89,000 560,500 $ 1,550,725
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 Overhead Budgets
For Month Ended October 31 Variable Amount Total Fixed
per Unit
Cost
Production (in units)
Variable overhead costs
Fixed overhead costs
Total overhead costs
$
0
$
Flexible Budget at Capacity Level of
65%
75%
85%
$
0 $
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. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost Production (in units) Variable overhead costs Fixed overhead costs Total overhead costs $ 0 $ Flexible Budget at Capacity Level of 65% 75% 85% $ 0 $ 0 $ 0 $ 0 $ 0 $
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