Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Antuan Company set the tollowing standard costs tor one unit of its product. Direct materials (6 Ibs.$5 per Ib.) Direct labor (2 hrs. $17 per

image text in transcribed

image text in transcribed

image text in transcribed

Antuan Company set the tollowing standard costs tor one unit of its product. Direct materials (6 Ibs.$5 per Ib.) Direct labor (2 hrs. $17 per hr.) Overhead (2 hrs. $18.50 per hr.) Total standard cost $ 30 34 37 Part 1 of 4 $101 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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. oints Skipped Overhead Budget (75% Capacity) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance Total variable overhead costs $ 45,000 180,000 45,000 90,000 eBook Print References $360,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead costs 24,000 80,000 12,000 79,000 195,000 $555,000 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (91,000 Ibs. @ $5.10 per lb.) Direct labor (30,500 hrs. $17.25 per hr.) Overhead costs $ 464,100 526,125 Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision $ 44,250 177,750 43,000 96,000 24,000 75,000 11,500 89,000 560,500 $1,550,725 Total costs Required 182. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget 65% of capacity Flexible Budget for 75% of capacity 85% of capacity Variable Amount Total Fixed per Unit Cost Sales (in units) Variable overhead costs 0.00 Fixed overhead costs Total overhead costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Accounting Uk Gaap Volume 2

Authors: Alan Sangster, Frank Wood

1st Edition

0273718800, 9780273718802

More Books

Students also viewed these Accounting questions