Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $6.00 per Ib.) Direct labor (1.7 hrs. @ $13.00 per hr.). Overhead (1.7 hrs. @ $18.50 per hr.) Total standard cost $24.00 22.10 31.45 $77.55 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 Depreciation-Machinery 23,000 70,000 Taxes and insurance 17,000 Supervision 226,750 Total fixed overhead costs 336,750 Total overhead costs $471,750 The company Incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,500 Ibs. @$6.20 per lb.) Direct labor (22,000 hrs. @$13.10 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,250 176,600 17,250 34,500 23,000 94,500 15,300 226,750 $ 381,300 288,200 629,150 $1,298,650 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. Sales (in units) Variable overhead costs ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget per Unit Variable Amount Total Fixed Cost $ 0.00 Fixed overhead costs 65% of capacity Flexible Budget for 75% of capacity 85% of capacity 0 0 0 0 0 3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Actual Cost 0 $ 0 S 0 0 $ 0 Standard Cos 4. Compute the direct labor cost variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance. Round "Rate per hour" answers to two decimal places.) Actual Cost $ 0 $ 0 0 S 0 Standard 5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Expected production volume Production level achieved Volume variance ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Variable costs Fixed costs Total overhead costs Flexible Budget Actual Results Variances Fav. / Unfav.