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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 (1.6 hours
Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $4.00 per pound) Direct labor (1.6 hours @ $11.00 per hour) Overhead (1.6 hours @ $18.50 per hour) Standard cost per unit $ 16.00 17.60 29.60 $ 63.20 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 Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs $ 30,000 75,000 30,000 30,000 165,000 23,000 70,000 17,000 169,000 279,000 $ 444,000 The company Incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,000 pounds @ $4.10 per pound) Direct labor (21,000 hours @ $11.10 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,150 176,300 34,500 34,500 23,000 94,500 15,300) 169,000 $ 250,100 233,100 588,250 $ 1,071,450
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