5 #2 Enabled: Saved Antuan Company set the following standard costs per unit for its product. Direct materials (5.0 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 $ 25.00 19.20 29.60 $ 73.80 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 24,000 71,000 17,000 197,000 309,000 $ 444,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (76,000 pounds @ $5.20 per pound) Direct labor (20,000 hours @ $12.40 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 395,200 248,000 $ 41,600 176,450 17,250 34,500 24,000 95,850 15,300 197,000 601,950 $ 1,245,150 < Prev 56 of 45 Next >