Question

Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. $5.00 per Ib. 15.00 26.60 35.15 Direct labor (1.9 hrs. @ ヂ14.00 per hr.) Overhead (1.9 hrs e $18.50 pe h.) 76.75 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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 (758 Capacityh variable overhead costs S 15,000 75,000 15,000 30.000 Indirect material Power Rep교ir큐 and maintenance Total v교riable overhead co t 135, 000 Fixed overhead cost Depreciation-Machinery Taxes and insurance upervision Total fixed overhead costs 24,000 72,000 17.000 279, 250 392 250 $527,250 Tot교1 overhead co t The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materi교1a 〔46,000 lbs. @ $5.10 per 1b. Direct labor (22, 000 hrs. e$14.40 per hr. Overhead costs $ 234, 600 316, 800 Indirect materials Indirect labor Power Rep교ir and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance upervision 41,800 176,700 17,250 34, 500 24,000 97,200 15, 300 279, 250 686, 000 $1,237,400 ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Flexible Budget for Variable Amount per Total Fixed 65% of 75% of 85% of Sales (in units) Vari iable overhead costs Indirect materials Indirect labor Power Repairs and maintenance Total variable costs 0.00 Fixed overhead costs Depreciation-Building Depreciation -Machin Taxes and insurance Total fixed costs Total overhead costs

Answer 1

Antuan Company
Flexible Overhead Budgets
For Month Ended October 31
	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		13000	15000	17000
Indirect labor	5.00		65000	75000	85000
Power	1.00		13000	15000	17000
Repairs and maintenance	2.00		26000	30000	34000
Total variable costs	9.00		117000	135000	153000
Fixed overhead costs
Depreciation- BUilding		24000	24000	24000	24000
Depreciation- Machinery		72000	72000	72000	72000
Taxes and insurance		17000	17000	17000	17000
Supervision		279250	279250	279250	279250
Total fixed costs		392250	392250	392250	392250
Total overhead costs			509250	527250	545250