## Answers

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) | (20000*65%)= 13000 | (20000*75%)= 15000 | (20000*85%)= 17000 | ||

Variable overhead costs | |||||

Indirect materials | (15000/15000)= 1.00 | (13000*$1.00)= 13000 | (15000*$1.00)= 15000 | (17000*$1.00)= 17000 | |

Indirect labor | (75000/15000)= 5.00 | (13000*$5.00)= 65000 | (15000*$5.00)= 75000 | (17000*$5.00)= 85000 | |

Power | (15000/15000)= 1.00 | (13000*$1.00)= 13000 | (15000*$1.00)= 15000 | (17000*$1.00)= 17000 | |

Repairs and maintenance | (30000/15000)= 2.00 | (13000*$2.00)= 26000 | (15000*$2.00)= 30000 | (17000*$2.00)= 34000 | |

Total variable overhead costs | $9.00 | $117000 | $135000 | $153000 | |

Fixed overhead costs | |||||

Depreciation—Building | 24000 | 24000 | 24000 | 24000 | |

Depreciation—Machinery | 70000 | 70000 | 70000 | 70000 | |

Taxes and insurance | 18000 | 18000 | 18000 | 18000 | |

Supervision | 224750 | 224750 | 224750 | 224750 | |

Total fixed overhead costs | $336750 | $336750 | $336750 | $336750 | |

Total overhead costs | $453750 | $471750 | $489750 |

NOTE:- For any problem regarding the answer please ask in the comment section.

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