Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $5.00 per Ib.) $ 20.00 Direct labor (2.0 hrs. @ $14.00 per hr.) 28.00 Overhead (2.0 hrs. @ $18.50 per hr.) 37.00 Total standard cost $ 85.00 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factorys capacity of 20,000 units per month. Following are the companys 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 DepreciationBuilding 24,000 DepreciationMachinery 71,000 Taxes and insurance 16,000 Supervision 309,000 Total fixed overhead costs 420,000 Total overhead costs $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 Ibs. @ $5.20 per lb.) $ 317,200 Direct labor (22,000 hrs. @ $14.30 per hr.) 314,600 Overhead costs Indirect materials $ 41,300 Indirect labor 176,150 Power 17,250 Repairs and maintenance 34,500 DepreciationBuilding 24,000 DepreciationMachinery 95,850 Taxes and insurance 14,400 Supervision 309,000 712,450 Total costs $ 1,344,250

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 Total Fixed Amount per Unit Cost Flexible Budget for 65% of 75% of 85% of capacity capacity capacity Sales (in units) Variable overhead costs Fixed overhead costs Total overhead costs 3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each by selecting for favorable, unfavorable, and No variance.) Actual Cost Standard Cost 4. Compute the direct labor cost variance, including its rate and efficiency variances. (Indicate the effect of each varian selecting for favorable, unfavorable, and No variance. Round "Rate per hour" answers to two decimal places.) Actual Cost Standard Cost 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.) 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