21-3A (Algo) Flexible overhead budget; materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $12.00 per hour) Overhead (1.8 hours $18.50 per hour) Standard cost per unit $ 15.00 21.60 33.30 $ 69.90 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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 Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries) Total fixed overhead costs Total overhead costs: $ 15,000 75,000 15,000 30,000 135,000 24,000 72,000 17,000 251,500 364,500 $ 499,500 9 < Prev 2 3 4 of 4 Next > The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 pounds $5.10 per pound) Direct labor (20,000 hours $12.30 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,300 176,050 17,250 34,500 24,000 97,200 15,300 251,500 $ 232,050 246,000 657,100 $ 1,135,150 Problem 21-3A (Algo) Part 2 2. Compute the direct materials variance; including its price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost 0 S $ O S 0 Standard Cost