Antuan Company set the following standard costs for one unit of its product. 1. Examine the monthly overhead budget to the left and determine the price per unit for each of the listed expenses and the total cost per unit for each variable cost. Then identify the total fixed overhead costs per month. Ibs/hrs Price/Unit Direct Materials Direct Labor Overhead Total Standard Cost price per lb/hr price per unit 655.00 530.00 25 17.00 S 34.00 2 5 18.50 5 37.00 $ 101.00 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 Variable Overhead Costs Indirect Materials Indirect Labor Power Repairs & Maintenance Total Varaible Overhead Costs Fixed Overhead Costs Depreciation - Building Depreciation - Machinery Taxes & Insurance Supervision Total Fixed Overhead Costs Cost/Month 45,000.00 180,000.00 45,000.00 90,000.00 360,000.00 2. Prepare flexible overhead budgets (as in Exhibit 23.12) for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. Variable Overhead Costs Indirect Materials Indirect Labor Power Repairs & Maintenance Total Varaible Overhead Costs Fixed Overhead Costs Depreciation - Building Depreciation - Machinery Taxes & Insurance Supervision Total Fixed Overhead Costs Total Overhead Costs 65% 75% 85% 24,000.00 80,000.00 12,000.00 79,000.00 195,000.00 555,000.00 The company incurred the following actual costs when it operated at 7596 of capacity in October. 454,100.00 525, 125.00 Direct Materials (91,000 lbs @ $5.10 per lb) Direct Labor (30,500 hrs @ $17.25 per hr) Overhead Costs Indirect Materials 44,250.00 Indirect Labor 177,750.00 Power 43,000.00 Repairs & Maintenance 95,000.00 Depreciation - Building 24,000.00 Depreciation - Machinery 75,000.00 Taxes & Insurance 11,500.00 Supervision 89,000.00 Total Costs 3. Compute the direct materials cost variance, including its price and quantity variances. Actual Flexible Standard 560,500.00 1,550.725.00 Formula Total Cost Price Variance Quantity Variance DM Cost Variance 4. Compute the direct labor cost variance, including its rate and efficiency variances. Actual Flexible Standard Formula Total Cost Rate Variance Efficiency Variance DL Cost Variance