Required Information The following information applies to the questions displaye

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Required Information The following information applies to the questions displayed below Antuan Company set the following standard costs for one unit of its product. Direct materials (3.8 Ibs.$5.80 per Ib.) Direct labor (1.8 hrs. s14.8e per hr.) Overhead (1.8 hrs.$18.58 per hr.) Total standard cost 25.28 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 evel. Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance Total variable overhead costs 15,e90 96,888 15,e0e 30,880 $15e,0e Fixed overhead costs Depreciation-Building Depreciation-Nachinery Taxes and insurance Supervision Total fixed overhead costs 24,880 7e,888 18,888 -349 Total overhead costs $499, 58e The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,589 Ibs. $5.28 per 1b.) 241,888 345,688 Direct labor (24,880 hrs. $14.48 per hr.) overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision s 41,9e8 176,258 17,25e 34, 588 24,80e 94,588 16,288 642.18e 51,229,58e Total costs Required: 182, Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed. Flexible Overhead Budgets Flexible Budget Unit For Month Ended October 31 Flexible Budget for 75% of Variable Amount Total Fixed | 65% of 85% of 13.000 15.000 17,000 Sales (in unis Varable overhead cosis 13.000 15.000 17,000 Indirect materials Indirect labor Power Repairs and maintenance 6.00 13.000 15.000 17,000 Fixed overhead costs 24,000 0,000 18,000 237.500 24.000 70,000 18.000 237.500 24,000 70,000 18,000 237,500 Taxes and insuranoe otal fixed costs 349.500 349.500 349.500 Total overhead costs

Explanation / Answer

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) 13,000 15,000 17,000 Variable costs Indirect materials 1 13,000 15,000 17,000 Indirect labor 6 78,000 90,000 102,000 Power 1 13,000 15,000 17,000 Repairs and maintenance 2 26,000 30,000 34,000 Total variable costs 10 130,000 150,000 170,000 Fixed costs Depreciation—Building 24000 24000 24000 24000 Depreciation—Machinery 70,000 70,000 70,000 70,000 Taxes and insurance 18,000 18,000 18,000 18,000 Supervision 237,500 237,500 237,500 237,500 Total fixed costs 349500 349500 349500 349500 Total overhead costs $479,500 $499,500 $519,500

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