"[The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $4.00 per pound) Direct labor (1.7 hours @ $13.00 per hour) Overhead (1.7 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 $ 15,000 75,000 15,000 30,000 135,000 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries. Total costs $ 12.00 22.10 31.45 $ 65.55 24,000 71,000 17,000 224,750 336,750 $ 471,750 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,500 pounds $4.20 per pound) Direct labor (21,000 hours $13.40 per hour) $ 195,300 281,400 Overhead costs $ 41,450 176,200 17,250 34,500 24,008 95,850 15,300 224,750 629,300 $ 1,106,000
"[The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $4.00 per pound) Direct labor (1.7 hours @ $13.00 per hour) Overhead (1.7 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 $ 15,000 75,000 15,000 30,000 135,000 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries. Total costs $ 12.00 22.10 31.45 $ 65.55 24,000 71,000 17,000 224,750 336,750 $ 471,750 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,500 pounds $4.20 per pound) Direct labor (21,000 hours $13.40 per hour) $ 195,300 281,400 Overhead costs $ 41,450 176,200 17,250 34,500 24,008 95,850 15,300 224,750 629,300 $ 1,106,000
Chapter1: Financial Statements And Business Decisions
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