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Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $4.00 per pound) Direct labor (1.7 hours
Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $4.00 per pound) Direct labor (1.7 hours @ $12.00 per hour) Overhead (1.7 hours @ $18.50 per hour) Standard cost per unit $ 16.00 20.40 31.45 $ 67.85 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 $ 15,000 75,000 Power 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs 24,000 71,000 18,000 223,750 336,750 $ 471,750 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs. The company incurred the following actual costs when it operated at 75% of capacity in October.
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