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Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels.

Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 72P: Moleno Company produces a single product and uses a standard cost system. The normal production...
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the company cure the mowing actuar costs when it operated at 75% of capacity in October. writer Direct materials (60,5ee pounds @ $5.20 per pound) Direct labor (19,eee hours e $11.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs Flexible Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. Production (in units) Variable overhead costs Indirect materials Indirect labor Power For Month Ended October 31 Variable Amount Total Fixed per Unit Cost Maintenance Taxes and insurance Total variable overhead Fixed overhead costs Total overhead costs ANTUAN COMPANY ▾ $ 0.00 $ 41,400 176,300 17,250 34,500 24,000 97,200 15,300 196,000 $ $ 314,600 212,800 Flexible Budget at Capacity Level of 65% 75% 85% 601,950 $ 1,129,350 $ Flexible Budget at Capacity Level of 65% 75% 85% 0 $ 0 $ 0 $ 0 $ 0 $ 0 0
Transcribed Image Text:the company cure the mowing actuar costs when it operated at 75% of capacity in October. writer Direct materials (60,5ee pounds @ $5.20 per pound) Direct labor (19,eee hours e $11.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs Flexible Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. Production (in units) Variable overhead costs Indirect materials Indirect labor Power For Month Ended October 31 Variable Amount Total Fixed per Unit Cost Maintenance Taxes and insurance Total variable overhead Fixed overhead costs Total overhead costs ANTUAN COMPANY ▾ $ 0.00 $ 41,400 176,300 17,250 34,500 24,000 97,200 15,300 196,000 $ $ 314,600 212,800 Flexible Budget at Capacity Level of 65% 75% 85% 601,950 $ 1,129,350 $ Flexible Budget at Capacity Level of 65% 75% 85% 0 $ 0 $ 0 $ 0 $ 0 $ 0 0
Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $5.00 per pound) Direct labor (1.6 hours @ $11.00 per hour) Overhead (1.6 hours @ $18.50 per hour) Standard cost per unit 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 Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs $ 15,000 75,000 15,000 30,000 135,000 $ 20.00 17.60 29.60 $ 67.20 24,000 72,000 17,000 196,000 309,000 $ 444,000 The company incurred the following actual costs when it operated at 75% of capacity in October.
Transcribed Image Text:Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $5.00 per pound) Direct labor (1.6 hours @ $11.00 per hour) Overhead (1.6 hours @ $18.50 per hour) Standard cost per unit 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 Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs $ 15,000 75,000 15,000 30,000 135,000 $ 20.00 17.60 29.60 $ 67.20 24,000 72,000 17,000 196,000 309,000 $ 444,000 The company incurred the following actual costs when it operated at 75% of capacity in October.
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