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[The following information applies to the questions displayed below.] Antuan Company set the following standard costs...

[The following information applies to the questions displayed below.]

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

Direct materials (3.0 Ibs. @ $5.00 per Ib.) $ 15.00
Direct labor (1.8 hrs. @ $13.00 per hr.) 23.40
Overhead (1.8 hrs. @ $18.50 per hr.) 33.30
Total standard cost $ 71.70


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 (75% Capacity)
Variable overhead costs
Indirect materials $ 30,000
Indirect labor 90,000
Power

30,000

Repairs and maintenance 30,000
Total variable overhead costs $ 180,000
Fixed overhead costs
Depreciation—Building 23,000
Depreciation—Machinery 72,000
Taxes and insurance 16,000
Supervision 208,500
Total fixed overhead costs 319,500
Total overhead costs $ 499,500


The company incurred the following actual costs when it operated at 75% of capacity in October.

Direct materials (45,500 Ibs. @ $5.20 per lb.) $ 236,600
Direct labor (21,000 hrs. @ $13.20 per hr.) 277,200
Overhead costs
Indirect materials $ 41,900
Indirect labor 176,950
Power 34,500
Repairs and maintenance 34,500
Depreciation—Building 23,000
Depreciation—Machinery 97,200
Taxes and insurance 14,400
Supervision 208,500 630,950
Total costs $ 1,144,750

Required:
1&2. 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.

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