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Required information The following information applies to the questions displayed below. Antuan Company set the following standard costs for one unit of its product. Direct
Required information The following information applies to the questions displayed below. Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. e $6.00 per Ib.) Direct labor (1.7 hrs. $13.00 per hr.) Overhead (1.7 hrs. $18.50 per 31.45 hr.) Total standard cost $24.00 $77.55 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. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance Total variable overhead costs 15,000 75,000 15,000 30,000 $135,000 Fixed overhead costs Depreciation- Building Depreciation- Machinery Taxes and insurance Supervision Total fixed overhead costs 25,000 71,000 17,000 223,750 336,750 Total overhead costs $471,750 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,000 Ibs. e $6.10 per lb.) Direct labor (21,000 hrs. 8 $13.30 per hr.) Overhead costs $ 372,100 279,300 Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machiner Taxes and insurance Supervision $ 41,600 176,650 17,250 34,500 25,000 95,850 15,300 223,750 629,900 $1,281,300 Total costs
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