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please! ensure that answer is visible please! Antuan Company set the following standard costs per unit for its product Direct materials (3.0 pounds @ $6.00
please! ensure that answer is visible please!
Antuan Company set the following standard costs per unit for its product Direct materials (3.0 pounds @ $6.00 per pound) $ 18.00 Direct labor (1.6 hours $13.00 per hour) 20.80 Overhead (1.6 hours @ $18.50 per hour) 29.60 Standard cost per unit $ 68.40 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 25% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75.000 Power 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 72,000 Taxes and insurance 16,000 Supervisory salaries 197,000 Total fixed overhead costs 309,000 Total overhead costs 5444.000 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (46,000 pounds @ $6.10 per pound $ 280,600 Direct labor (21,000 hours @ $13.30 per hour) 279,300 Overhead costs Indirect materials 5.41,300 Indirect labor 176,800 Power 17.250 Maintenance 34,500 Depreciation-Building 24,000 Depreciation Machinery 97.200 Taxes and insurance 14,400 Supervisory salaries 197,000 682,450 Total costs $1,162.350 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels ANTUAN COMPANY Floxible Overhead Budgets Flexible Budget at Capacity Level of For Month Ended October 31 Variable Amount Total Fixed Cost 65% 75% 85% per Unit Production (in units) Variable overhead costs Fixed overhead costs Total overhead costs Step by Step Solution
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