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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. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost Production (in units) Variable overhead costs Fixed overhead costs Total overhead costs $ 0 $ Flexible Budget at Capacity Level of 65% 75% 85% $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0

Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost Production (in units) Variable overhead costs Fixed overhead costs Total overhead costs $ 0 $ Flexible Budget at Capacity Level of 65% 75% 85% $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0

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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[The following information applies to the questions displayed below.j Antuan Company set the following standard costs per unit for its product. Direct materials (6 pounds @ $5 per pound) Direct labor (2 hours @ $17 per hour) Overhead (2 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 $ 45,000 180,000 45,000 90,000 360,000 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries. Total costs $ 30 34 37 $ 101 24,000 80,000 12,000 79,000 195,000 $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (91,000 pounds @ $5.10 per pound) Direct labor (30,500 hours @ $17.25 per hour) $ 464,100 526, 125 Overhead costs $ 44,250 177,750 43,000 96,000 24,000 75,000 11,500 89,000 560,500 $ 1,550,725
Transcribed Image Text:[The following information applies to the questions displayed below.j Antuan Company set the following standard costs per unit for its product. Direct materials (6 pounds @ $5 per pound) Direct labor (2 hours @ $17 per hour) Overhead (2 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 $ 45,000 180,000 45,000 90,000 360,000 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries. Total costs $ 30 34 37 $ 101 24,000 80,000 12,000 79,000 195,000 $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (91,000 pounds @ $5.10 per pound) Direct labor (30,500 hours @ $17.25 per hour) $ 464,100 526, 125 Overhead costs $ 44,250 177,750 43,000 96,000 24,000 75,000 11,500 89,000 560,500 $ 1,550,725
Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost Production (in units) Variable overhead costs Fixed overhead costs Total overhead costs $ 0 $ Flexible Budget at Capacity Level of 65% 75% 85% $ 0 $ 0 $ 0 $ 0 $ 0 $
Transcribed Image Text:Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost Production (in units) Variable overhead costs Fixed overhead costs Total overhead costs $ 0 $ Flexible Budget at Capacity Level of 65% 75% 85% $ 0 $ 0 $ 0 $ 0 $ 0 $
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