[The following information applies to the questions displayed below] Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $4.00 per pound) Direct labor (1.9 hours @ $11.00 per hour) Overhead (1.9 hours @ $18.50 per hour) Standard cost per unit $ 16.00 20.90 35.15 $ 72.05 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 $ 15,000 75,000 Power 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building 25,000 Depreciation-Machinery 70,000 Taxes and insurance 17,000 Supervisory salaries 280,250 392,250 $ 527,250 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 (61,000 pounds @ $4.10 per pound) Direct labor (19,000 hours @ $11.10 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 250,100 210,900 $ 41,150 176,750 17,250 34,500 25,000 94,500 15,300 280,250 684,700 $ 1,145,700 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels.
[The following information applies to the questions displayed below] Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $4.00 per pound) Direct labor (1.9 hours @ $11.00 per hour) Overhead (1.9 hours @ $18.50 per hour) Standard cost per unit $ 16.00 20.90 35.15 $ 72.05 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 $ 15,000 75,000 Power 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building 25,000 Depreciation-Machinery 70,000 Taxes and insurance 17,000 Supervisory salaries 280,250 392,250 $ 527,250 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 (61,000 pounds @ $4.10 per pound) Direct labor (19,000 hours @ $11.10 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 250,100 210,900 $ 41,150 176,750 17,250 34,500 25,000 94,500 15,300 280,250 684,700 $ 1,145,700 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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![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 (4.0 pounds @ $4.00 per pound)
Direct labor (1.9 hours @ $11.00 per hour)
Overhead (1.9 hours @ $18.50 per hour)
Standard cost per unit
$ 16.00
20.90
35.15
$ 72.05
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
$ 15,000
75,000
Power
15,000
Maintenance
30,000
Total variable overhead costs
135,000
Fixed overhead costs
Depreciation-Building
Depreciation-Machinery
25,000
70,000
Taxes and insurance
Supervisory salaries
17,000
280,250
392,250
$ 527,250
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 (61,000 pounds @ $4.10 per pound)
Direct labor (19,000 hours @ $11.10 per hour)
Overhead costs
Indirect materials
Indirect labor
Power
Maintenance
Depreciation-Building
Depreciation-Machinery
Taxes and insurance
Supervisory salaries
Total costs
$ 250,100
210,900
$ 41,150
176,750
17,250
34,500
25,000
94,500
15,300
280,250
684,700
$ 1,145,700
Required:
1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity
levels.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffb906427-8de1-4409-8878-ce702a1dcdbb%2F0a53e22b-6623-4546-b3ce-96338aedbb95%2Fqxnkvyb_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 (4.0 pounds @ $4.00 per pound)
Direct labor (1.9 hours @ $11.00 per hour)
Overhead (1.9 hours @ $18.50 per hour)
Standard cost per unit
$ 16.00
20.90
35.15
$ 72.05
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
$ 15,000
75,000
Power
15,000
Maintenance
30,000
Total variable overhead costs
135,000
Fixed overhead costs
Depreciation-Building
Depreciation-Machinery
25,000
70,000
Taxes and insurance
Supervisory salaries
17,000
280,250
392,250
$ 527,250
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 (61,000 pounds @ $4.10 per pound)
Direct labor (19,000 hours @ $11.10 per hour)
Overhead costs
Indirect materials
Indirect labor
Power
Maintenance
Depreciation-Building
Depreciation-Machinery
Taxes and insurance
Supervisory salaries
Total costs
$ 250,100
210,900
$ 41,150
176,750
17,250
34,500
25,000
94,500
15,300
280,250
684,700
$ 1,145,700
Required:
1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity
levels.
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