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Antuan Company set the following standard costs for one unit of its product Direct materials (3.0 Ibs. $5.00 per Ib.) Direct labor (1.7 hrs. $13.00
Antuan Company set the following standard costs for one unit of its product Direct materials (3.0 Ibs. $5.00 per Ib.) Direct labor (1.7 hrs. $13.00 per hr.) Overhead (1.7 hrs. $18.58 per hr.) Total' standard cost $15.00 22.18 31.45 $68.55 The predetermined overhead rate ($18 50 per direct labor hour) is based on an expected volume of 75% of the factory's capacity of 2000 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 15,000 75,000 15,000 30,000 Power Repairs and maintenance Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead costs 23,000 72,800 17,000 224,758 336,750 $471,750 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,000 Ibs. $5.10 per lb.) Direct labor (28,6000 hrs. $13.30 per hr.) Overhead costs $ 234,60e 266,000 Indirect materials s 41.700 KPrev 2 3 4 5 of 18l Next >
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