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Required: L Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity evels. For Month Ended October 31 Production (nunits) Variable overhead costs Fixed overhead costs Total overhead costs ANTUAN COMPANY Flexible Overhead Budgets Variable Amount Total Fixed per Unit Cost Flexible Budget at Capacity Level of 65% 75% 85%

Required: L Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity evels. For Month Ended October 31 Production (nunits) Variable overhead costs Fixed overhead costs Total overhead costs ANTUAN COMPANY Flexible Overhead Budgets Variable Amount Total Fixed per Unit Cost Flexible Budget at Capacity Level of 65% 75% 85%

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...
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Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $14.00 per hour) Overhead (1.8 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. Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs overhead costs Fixed Depreciation Building Depreciation Machinery Taxes and insurance Supervisory salaries. Total fixed overhead costs Total overhead costs Overhead Budget (75% Capacity) Indirect materials Indirect labor Power Maintenance Depreciation Building Depreciation Machinery Taxes and insurance Supervisory salaries Total costs n The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46, 580 pounds @ $5.18 per pound) Direct labor (19,888 hours @ $14.20 per hour) $ 237,150 269, 880 Overhead costs $ 15,000 75,860 15,800 30, 800 135,000 Production (in units) Variable overhead costs Fixed overhead costs 24,000 71,900 18,000 251, 500 364,500 $ 499, 500 Total overhead costs Flexible Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost $ 15.00 25.20 33.30 S 73.50 ANTUAN COMPANY Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. $ 41,760 176, 950 17,250 34,500 24,000 95, 850 16, 200 251, 500 657,950 $ 1,164,980 Flexible Budget at Capacity Level of 65% 75% 85%
Transcribed Image Text:Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $14.00 per hour) Overhead (1.8 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. Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs overhead costs Fixed Depreciation Building Depreciation Machinery Taxes and insurance Supervisory salaries. Total fixed overhead costs Total overhead costs Overhead Budget (75% Capacity) Indirect materials Indirect labor Power Maintenance Depreciation Building Depreciation Machinery Taxes and insurance Supervisory salaries Total costs n The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46, 580 pounds @ $5.18 per pound) Direct labor (19,888 hours @ $14.20 per hour) $ 237,150 269, 880 Overhead costs $ 15,000 75,860 15,800 30, 800 135,000 Production (in units) Variable overhead costs Fixed overhead costs 24,000 71,900 18,000 251, 500 364,500 $ 499, 500 Total overhead costs Flexible Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost $ 15.00 25.20 33.30 S 73.50 ANTUAN COMPANY Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. $ 41,760 176, 950 17,250 34,500 24,000 95, 850 16, 200 251, 500 657,950 $ 1,164,980 Flexible Budget at Capacity Level of 65% 75% 85%
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