[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 $12.00 per hour) Overhead (1.6 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 $15,000 75,000 15,000 30,000 135,000 Indirect materials Indirect labor Power 25,000 71,000 17,000 196,000 309,000 444,000 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 317,200 256,200 Direct materials (61,000 pounds $5.20 per pound) Direct labor (21,000 hours $12.20 per hour) Overhead costa Maintenance Depreciation Building Depreciation Machinery Taxes and insurance Supervisory salaries Total costs $ 20.00 19.20 29.60 $ 68.80 $ 41,900 176,500 17,250 34,500 25,000 95,850 15,300 196,000 602,300 $1,175,700 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels.
[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 $12.00 per hour) Overhead (1.6 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 $15,000 75,000 15,000 30,000 135,000 Indirect materials Indirect labor Power 25,000 71,000 17,000 196,000 309,000 444,000 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 317,200 256,200 Direct materials (61,000 pounds $5.20 per pound) Direct labor (21,000 hours $12.20 per hour) Overhead costa Maintenance Depreciation Building Depreciation Machinery Taxes and insurance Supervisory salaries Total costs $ 20.00 19.20 29.60 $ 68.80 $ 41,900 176,500 17,250 34,500 25,000 95,850 15,300 196,000 602,300 $1,175,700 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please help me to solve this problem
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education