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Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $6.00 per pound)$ 24.00Direct labor (2.0 hours @

Antuan Company set the following standard costs per unit for its product.

Direct materials (4.0 pounds @ $6.00 per pound)$ 24.00Direct labor (2.0 hours @ $12.00 per hour)24.00Overhead (2.0 hours @ $18.50 per hour)37.00Standard cost per unit$ 85.00

The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factorys capacity of 20,000 units per month. Following are the companys budgeted overhead costs per month at the 75% capacity level.

Overhead Budget (75% Capacity)Variable overhead costs Indirect materials$ 15,000Indirect labor75,000Power15,000Maintenance30,000Total variable overhead costs135,000Fixed overhead costs DepreciationBuilding23,000DepreciationMachinery71,000Taxes and insurance17,000Supervisory salaries309,000Total fixed overhead costs420,000Total overhead costs$ 555,000

The company incurred the following actual costs when it operated at 75% of capacity in October.

Direct materials (60,500 pounds @ $6.20 per pound) $ 375,100Direct labor (20,000 hours @ $12.40 per hour) 248,000Overhead costs Indirect materials$ 42,000 Indirect labor176,900 Power17,250 Maintenance34,500 DepreciationBuilding23,000 DepreciationMachinery95,850 Taxes and insurance15,300 Supervisory salaries309,000713,800Total costs $ 1,336,900

Problem 8-3A (Algo) Part 4image text in transcribed

image text in transcribed Required information hapters 7&8

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