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


Direct materials ((3.0 Ibs. @ $6.0 per Ib.) $ 18.00
Direct labor (1.8 hrs. @ $11.0 per hr.) 19.80
Overhead (1.8 hrs. @ $18.50 per hr.) 33.30

Total standard cost $ 71.10


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% level.

Overhead Budget (75% Capacity)
Variable overhead costs
Indirect materials $ 15,000
Indirect labor 75,000
Power 15,000
Repairs and maintenance 30,000


Total variable overhead costs $ 135,000
Fixed overhead costs
Depreciation—building 24,000
Depreciation—machinery 70,000
Taxes and insurance 16,000
Supervision 254,500


Total fixed overhead costs 364,500

Total overhead costs $ 499,500


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


Direct materials (46,000 Ibs. @ $6.20 per lb.) $ 285,200
Direct labor (30,000 hrs. @ $11.20 per hr.) 336,000
Overhead costs
Indirect materials $ 44,500
Indirect labor 176,500
Power 17,250
Repairs and maintenance 34,500
Depreciation—building 24,000
Depreciation—machinery 94,500
Taxes and insurance 14,400
Supervision 254,500 660,150


Total costs $ 1,281,350

References


1.value:
8 points
You did NOT receive full credit for this question in previous attempt.

Problem 24-5A Part 1
Required:
1(a)
Examine the monthly overhead budget to determine the costs per unit for each variable overhead item and its total per unit costs. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Variable costs (per unit) Amount
Indirect materials $
Indirect labor
Power
Repairs and maintenance

Total variable costs $


1(b)
Examine the monthly overhead budget to identify the total fixed costs per month. (Omit the "$" sign in your response.)

Total fixed costs $