Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $4.00 per pound) Direct labor (1.8 hours @ $14.00 per hour) Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit $ 16.00 25.20 33.30 $ 74.50 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 (758 Capacity) Variable overhead costs Indirect materials Indirect labor $ 15,000 75,000 Power 15,000 Maintenance 30,000 Total variable overhead costs. 135,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery 23,000 71,000 Taxes and insurance Supervisory salaries 17,000 253,500 364,500 $ 499,500 Total fixed overhead costs Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 pounds @ $4.20 per pound) Direct labor (19,000 hours @ $14.30 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries $ 256,200 271,700 $ 41,200 176,600 17,250 34,500 23,000 95,850 15,300 253,500 657,200 2 d es Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,100 units. Sales Costs Direct materials Direct labor PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales staff commissions. Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment Income $ 3,020,000 981,500 241,600 75,500 295,000 203,000 226,500 246,000 408,900 191,000 $ 151,000 Required: 1&2. Prepare flexible budgets at sales volumes of 14,100 and 16,100 units. 3. The company's business conditions are improving. One possible result is a sales volume of 18,100 units. Prepare a simple budgeted income statement if 18,100 units are sold. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Prepare flexible budgets at sales volumes of 14,100 and 16,100 units. PHOENIX COMPANY