Antuan Company set the following standard costs for one unit of its product Dire

Question

Antuan Company set the following standard costs for one unit of its product Direct materials (4.0 Ibs. $6.00 per Ib. $24.00 Direct labor (1.8 hrs. $11.00 per hr.) Overhead (1.8 hrs. $18.50 per hr.) Total standard cost 19.80 33.30 $77.10 Part 3 of 4 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the 75% capacity level. points capacty of 20,000 units per month. Following are the company's budgeted overhead costs per month eBook Overhead Budget (75t Capacity) Print Variable overhead costs 30,000 75,000 30,000 30,000 Indirect materials Indirect labor Power Repairs and maintenance Total variable overhead costs -$165,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead costs 23,000 71,000 17,000 223,500 334,500 $499,500 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61.000 Ibs. S6.10 per

Explanation / Answer

SH = (75% x 20000 units) x 1.8 hours = 15000 x 1.8 hours = 27000 hours

Actual Cost Standard Cost AH x AR AH x SR SH x SR 28000 x 11.40 28000 x 11.00 27000 x 11.00 319200 308000 297000

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