Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

#9 all boxes outlined in blue need an answer Required Information [The following Information applies to the questions displayed below] Antuan Company set the following

image text in transcribed

image text in transcribed

#9 all boxes outlined in blue need an answer

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 (1.7 hours @ $12.00 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 Depreciation-Building Depreciation-Machinery The company Incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 pounds @ $5.20 per pound) Direct labor (22,000 hours @ $12.30 per hour) overhead costs Taxes and insurance Supervisory salaries Total costs $ 75,000 15,000 30,000 135,000 $ 20.00 20.40 31.45 $71.85 24,000 71,000 17,000 224,750 336,750 $ 471,750 $41,100 176,300 17,250 34,500 24,000 95,850 15,300 224,750 $317, 200 270,600 629,050 $1,216,850 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. Flexible Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost Production (in units) Variable overhead costs Fixed overhead costs ANTUAN COMPANY Total overhead costs. Flexible Budget at Capacity Level of 65% 75% 85%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A One-Year Accounting Course Part 2

Authors: Trevor Gambling

1st Edition

0080130267, 9780080130262

More Books

Students also viewed these Accounting questions