Antuan Company set the following standard costs for one unit of its product Direct materials (3.0 Ibs. @ $5.00 per Ib.) Direct labor (1.8 hrs. @ $12.00 per hr.) Overhead (1.8 hrs. @ $18.50 per hr.) Total standard cost $15.00 21.60 33.30 $69.90 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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 $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $135,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 70,000 Taxes and insurance 17,000 Supervision 253,500 Total fixed overhead costs 364,500 $499,500 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October $ 232,050 256,200 Direct materials (45,500 lbs. @ $5.10 per lb.) Direct labor (21,000 hrs. @ $12.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building $ 41,600 176,500 17,250 34,500 24,000 Help Sav Overhead Budget (754 Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $135,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 70,000 Taxes and insurance 17,000 Supervision 253,500 Total fixed overhead costi 364,500 Total overhead costs $499,500 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (45,500 lbs. @ $5.10 per lb.) Direct labor (21,000 hrs. $12.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 232,050 256,200 $ 41,600 176,500 17,250 34,500 24,000 94,500 15,300 253,500 657,150 $1,145,480 Required: 1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed. Next > 3 2. 4 5 Prov of 18 Help Required: 1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65% 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Variable Amount Total Fixed 65% of Cost capacity Flexible Budget for 75% of capacity per Utt 85% of capacity Sales (in units) Variable overhead costs Fixed overhead costs Total overhead costs Minyt
