Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. $5.00 per Ib.) Direct labor (1.7 hrs. $13.00 per hr.) Overhead (1.7 hrs. $18.50 per hr.) $15.00 22.10 31.45 Total standard cost $68.55 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 Taxes and insurance 24,000 72,000 16,000 224,750 Supervision 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 (45,500 Ibs. $5.20 per lb.) 236,600 Direct labor (23,000 hrs. $13.20 per hr.) Overhead costs 303,600 Indirect materials 41,550 Indirect labor 176,950 17,250 34,500 Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance 24,000 97,200 14,400 Supervision 224,750 630,600 Total costs $1,170,800 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 Flexible Budget for 85% of Variable Amount Total Fixed Cost 65% of 75% of capacity capacity pacity per Unit Sales (in units) Variable overhead costs $ 0.00 Fixed overhead costs 0 0 Total overhead costs 3. Compute the direct materials cost variance, including its price and quantity variances. AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price Actual Cost Standard Cost 4. Compute the direct labor cost variance, including its rate and efficiency variances. AH Actual Hours SH Standard Hours AR = Actual Rate SR Standard Rate Actual Cost Standard Cost 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 Fav./Unfav. Flexible Budget Actual Results Variances Variable costs Fixed costs Total overhead costs