8-3A (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 (4.8 pounds @ $5.00 per pound) Direct labor (1.8 hours $13.00 per hour) Overhead (1.8 hours $18.50 per hour) Standard cost per unit 20.00 23.40 33.30 76.70 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 25,000 Indirect labor 75,000 Power Maintenance 45,000 Total variable overhead costs 150,000 Fixed overhead costs Depreciation-Building 25,000 Depreciation-Machinery 71,000 Taxes and insurance 17,000 Supervisory salaries 236,500 Total Fixed overhead costs 349,500 Total overhead costs $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,000 pounds @ $5.10 per pound) Direct labor (23,000 hours @ $13.10 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs 321,100 301,300 $ 41,750 176,600 17,250 51,750 25,000 95,850 15,300 236,500 660,000 $1,222,400 Problem 8-3A (Algo) Part 4 4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead (Indicate the effect of each verlance by selecting favorable, unfavorable, or no variance.) 23 Problem 8-3A (Algo) Part 4 4. Prepare a detailed overhead variance report that shows the variances for individual Items of overhead. (Indicate the effect of each varlance by selecting favorable, unfavorable, or no varlance.) ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume Variance Flexible Budget Actual Results Variances Favorable/Unfavorable Variable overhead costs ces Fived overhead costs Total overhead costs Volume Variance Volume vanance Total overhead variance