21.8

Antuan Company set the following standard costs for one unit of its product. 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. The company Incurred the following actual costs when It operated at 75% of capacity in October. 5. Prepare a detalled overhead varlance report that shows the varlances for Individual Items of overhead. (Indlcate the effect of each varlance by selecting for favorable, unfavorable, and No varlance.)