Antuan Company set the following standard costs for one unit of its product. Direct materials (6 lbs. $5 per lb.) Direct labor (2 hrs. $17 per hr.) Overhead (2 hrs. @ $18.50 per hr.) $ 30 34 37 Total standard cost $ 101 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 Indirect labor Power Repairs and maintenance $45,000 180,000 45,000 90,000 Total variable overhead costs $360,000 Fixed overhead costs Depreciation-building Depreciation-machinery Taxes and insurance Supervision 24,000 80,000 12,000 79,000 Total fixed overhead costs 195,000 Total overhead costs $555,000 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (91,000 lbs.@ $5.10 per lb.) Direct labor (30,500 hrs.@ $17.25 per hr.) Overhead costs $ 464,100 526,125 $44,250 Indirect materials Indirect labor Power Repairs and maintenance Depreciation-building Depreciation-machinery Taxes and insurance Supervision 177,750 43,000 96,000 24,000 75,000 11,500 89,000 560,500 Total costs 1,550,725 Required 1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Variable Amount er Unit Total Fixed Cost 65% of capacity Flexible Budget for 75% of capacity 85% of capacity Sales (in units) Variable overhead costs 0.00 0 Fixed overhead costs 0 Total overhead costs 3. Compute the direct materials cost variance, including its price and quantity variances Actual Cost Standard Cost 4. Compute the direct labor cost variance, including its rate and efficiency variances Actual Cost Standard Cost 0 0 0 0 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 Budget Actual Results Variances Fav./Unfav Variable costs Fixed costs Total overhead costs