Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CHAPTER 21. PLEASE ANSWER 1-4 THIS IS ALL CONSIDERED ONE QUESTION, THIRD TIME POSTING THIS. THANKS IN ADVANCE. [The following information applies to the questions

CHAPTER 21. PLEASE ANSWER 1-4 THIS IS ALL CONSIDERED ONE QUESTION, THIRD TIME POSTING THIS. THANKS IN ADVANCE.

[The following information applies to the questions displayed below.]

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

Direct materials (3.0 Ibs. @ $6.00 per Ib.) $ 18.00
Direct labor (1.6 hrs. @ $12.00 per hr.) 19.20
Overhead (1.6 hrs. @ $18.50 per hr.) 29.60
Total standard cost $ 66.80

The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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 $ 15,000
Indirect labor 75,000
Power 15,000
Repairs and maintenance 30,000
Total variable overhead costs $ 135,000
Fixed overhead costs
Depreciationbuilding 24,000
Depreciationmachinery 71,000
Taxes and insurance 18,000
Supervision 196,000
Total fixed overhead costs 309,000
Total overhead costs $ 444,000

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

Direct materials (46,000 Ibs. @ $6.20 per lb.) $ 285,200
Direct labor (29,000 hrs. @ $12.40 per hr.) 359,600
Overhead costs
Indirect materials $ 41,150
Indirect labor 176,100
Power 17,250
Repairs and maintenance 34,500
Depreciationbuilding 24,000
Depreciationmachinery 95,850
Taxes and insurance 16,200
Supervision 196,000 601,050
Total costs $ 1,245,850

1.

value: 25.00 points

Required information

Required:
1&2.

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.

image text in transcribed

image text in transcribed

Document1- Word FILE HOME INSERT DESIGNPAGE LAYOUT REFERENCES MAILINGSREVIEW VIEW Sign in 5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead Required 1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at ANTUAN COMPANY the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed Overhead Variance Report For Month Ended October 31 ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Expected production volume Production level achieved Volume variance Flexible Budget Flexible Budget for 75% of 65% of Flexible Budget Actual Results Variances Fav. / Unfav 85% of capacity Variable Amount Total Fixed r Un Variable costs Sales (in units) Variable overhead costs Fixed costs Fixed overhead costs Total overhead costs Total overhead costs PAGE 1 OF2 OWORDS L + 160% 10:49 AM 7/21/2016 Search the web and Windows 0 Gqu

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_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions

Question

In what order do accounts appear in the chart of accounts?

Answered: 1 week ago