Question
Required information [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct
Required information [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $6.00 per pound) Direct labor (1.6 hours @ $11.00 per hour) Overhead (1.6 hours @ $18.50 per hour) Standard cost per unit $ 18.00 17.60 29.60 $ 65.20 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 Maintenance $ 15,000 75,000 Power 15,000 30,000 Total variable overhead costs 135,000 Fixed overhead costs 25,000 70,000 17,000 197,000 309,000 $ 444,000 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs 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) Direct labor (21,000 hours @ $11.30 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,100 176,000 17,250 34,500 25,000 94,500 15,300 197,000 $ 280,600 237,300 600,650 $ 1,118,550
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