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 @ $5.00 per pound) Direct labor (2.0 hours@ $11.00 per hour) Overhead (2.0 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 Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,500 pounds @ $5.10 per pound) $ 313,650 246,400 Direct labor (22,000 hours @ $11.20 per hour) Overhead costs Taxes and insurance Supervisory salaries Total costs $ 15,000 75,000 15,000 30,000 135,000 $ 20.00 22.00 37.00 $ 79.00 24,000 71,000 16,000 309,000 420,000 $ 555,000 $ 41,100 176,400 17,250 34,500 24,000 95,850 14,400 309,000 712,500 $ 1,272,550
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 @ $5.00 per pound) Direct labor (2.0 hours@ $11.00 per hour) Overhead (2.0 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 Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,500 pounds @ $5.10 per pound) $ 313,650 246,400 Direct labor (22,000 hours @ $11.20 per hour) Overhead costs Taxes and insurance Supervisory salaries Total costs $ 15,000 75,000 15,000 30,000 135,000 $ 20.00 22.00 37.00 $ 79.00 24,000 71,000 16,000 309,000 420,000 $ 555,000 $ 41,100 176,400 17,250 34,500 24,000 95,850 14,400 309,000 712,500 $ 1,272,550
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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