5 Direct materials (3.0 Ibs. @ $15.00 $5.00 per Ib.) Direct labor (1.6 hrs. $12.00 19.20 per hr.) Overhead (1.6 hrs. @ $18.50 per 29.60 hr.) Total standard cost $63.80 Part 4 of 4 8 points 8 02:06:01 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 $ 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 23,000 Depreciation- Machinery 71,000 Taxes and insurance 17,000 Supervision 198,000 Total fixed overhead 309,000 costs Total overhead costs $444,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,000 Ibs. @ $5.10 per lb.) $ 234,600 Direct labor (19,000 hrs. @ 233,700 $12.30 per hr.) Overhead costs Indirect materials $ 41,750 Indirect labor 176, 250 Power 17,250 Repairs and maintenance 34,500 Depreciation-Building 23,000 Depreciation-Machinery 95,850 Taxes and insurance 15,300 Supervision 198,000 601,900 Total costs $1,070,200 5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume variance Flexible Actual Variances Fav. / Unfav. Budget Results Variable costs Fixed costs Total overhead costs