Question

Problem 21-3A Flexible budget preparation computation of materials, labor, and overhead variances and overhead variance report LO P1, P2, P3, C2 Artuan Company set the following standard costs for an und of the product The predetermined overhead to 1812 50 per drect later hou is based on an expected volume of 755 coronte 751 TWE The company increme n t Obe Problem 21-3A Part 1&2 Rec 162 Po dbor Och and capaces and als o ANTUN COMPANY For det er

Answer 1

Solution 1 & 2:

Antuan company
Flexible Overhead Budget
For month ended Oct 31
Particulars	Flexible Budget		Flexible Budget for
	Variable amount per unit	Total fixed cost	65% of capacity	75% of capacity	85% of capacity
Sales (In units)			13000	15000	17000
Variable overhead costs:
Indirect materials	$1.00		$13,000.00	$15,000.00	$17,000.00
Indirect labor	$5.00		$65,000.00	$75,000.00	$85,000.00
Power	$1.00		$13,000.00	$15,000.00	$17,000.00
Repairs and maintenance	$2.00		$26,000.00	$30,000.00	$34,000.00
Total variable costs	$9.00		$117,000.00	$135,000.00	$153,000.00
Fixed overhead costs:
Depreciation - Building		$24,000.00	$24,000.00	$24,000.00	$24,000.00
Depreciation - Machinery		$71,000.00	$71,000.00	$71,000.00	$71,000.00
Taxes and Insurance		$18,000.00	$18,000.00	$18,000.00	$18,000.00
Supervision		$223,750.00	$223,750.00	$223,750.00	$223,750.00
Total fixed costs		$336,750.00	$336,750.00	$336,750.00	$336,750.00
Total overhead costs			$453,750.00	$471,750.00	$489,750.00