Required information [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $5.00 per pound) Direct labor (1.6 hours @ $14.00 per hour) Overhead (1.6 hours @ $18.50 per hour) Standard cost per unit $ 20.00 22.40 29.60 $ 72.00 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 30,000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building 23,000 Depreciation-Machinery 71,000 Taxes and insurance 18,000 Supervisory salaries 197,000 309,000 $ 444,000 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 (60,500 pounds @ $5.10 per pound) Direct labor (21,000 hours @ $14.40 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 308,550 302,400 $ 41,900 176,650 17,250 34,500 23,000 95,850 16,200 197,000 602,350 $ 1,213,300 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 Flexible Budget at Capacity Level of per Unit Cost 65% 75% 85% Production (in units) Variable overhead costs $ 0.00 $ 0 $ 0 $ 0 Fixed overhead costs $ 0 $ 0 $ 0 $ 0 Total overhead costs
Required information [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $5.00 per pound) Direct labor (1.6 hours @ $14.00 per hour) Overhead (1.6 hours @ $18.50 per hour) Standard cost per unit $ 20.00 22.40 29.60 $ 72.00 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 30,000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building 23,000 Depreciation-Machinery 71,000 Taxes and insurance 18,000 Supervisory salaries 197,000 309,000 $ 444,000 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 (60,500 pounds @ $5.10 per pound) Direct labor (21,000 hours @ $14.40 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 308,550 302,400 $ 41,900 176,650 17,250 34,500 23,000 95,850 16,200 197,000 602,350 $ 1,213,300 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 Flexible Budget at Capacity Level of per Unit Cost 65% 75% 85% Production (in units) Variable overhead costs $ 0.00 $ 0 $ 0 $ 0 Fixed overhead costs $ 0 $ 0 $ 0 $ 0 Total overhead costs
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[The following information applies to the questions displayed below.]
Antuan Company set the following standard costs per unit for its product.
Direct materials (4.0 pounds @ $5.00 per pound)
Direct labor (1.6 hours @ $14.00 per hour)
Overhead (1.6 hours @ $18.50 per hour)
Standard cost per unit
$ 20.00
22.40
29.60
$ 72.00
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
30,000
Total variable overhead costs
135,000
Fixed overhead costs
Depreciation-Building
23,000
Depreciation-Machinery
71,000
Taxes and insurance
18,000
197,000
309,000
$ 444,000
Supervisory salaries
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 (60,500 pounds @ $5.10 per pound)
Direct labor (21,000 hours @ $14.40 per hour)
Overhead costs
Indirect materials
Indirect labor
Power
Maintenance
Depreciation-Building
Depreciation-Machinery
Taxes and insurance
Supervisory salaries
Total costs
$ 308,550
302,400
$ 41,900
176,650
17,250
34,500
23,000
95,850
16,200
197,000
602,350
$ 1,213,300
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
Flexible Budget at Capacity Level of
65%
75%
85%
$
0.00
0 $
0 $
0
Fixed overhead costs
$
0
$
0 $
0
$
0
Total overhead costs](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7aaa0f46-bce4-44e6-a785-fb5e1d3a80b8%2F3d70e763-610c-4da8-8204-3aae48ba5cc7%2Fd167tee_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Antuan Company set the following standard costs per unit for its product.
Direct materials (4.0 pounds @ $5.00 per pound)
Direct labor (1.6 hours @ $14.00 per hour)
Overhead (1.6 hours @ $18.50 per hour)
Standard cost per unit
$ 20.00
22.40
29.60
$ 72.00
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
30,000
Total variable overhead costs
135,000
Fixed overhead costs
Depreciation-Building
23,000
Depreciation-Machinery
71,000
Taxes and insurance
18,000
197,000
309,000
$ 444,000
Supervisory salaries
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 (60,500 pounds @ $5.10 per pound)
Direct labor (21,000 hours @ $14.40 per hour)
Overhead costs
Indirect materials
Indirect labor
Power
Maintenance
Depreciation-Building
Depreciation-Machinery
Taxes and insurance
Supervisory salaries
Total costs
$ 308,550
302,400
$ 41,900
176,650
17,250
34,500
23,000
95,850
16,200
197,000
602,350
$ 1,213,300
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
Flexible Budget at Capacity Level of
65%
75%
85%
$
0.00
0 $
0 $
0
Fixed overhead costs
$
0
$
0 $
0
$
0
Total overhead costs
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