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. @ $12.00 per hr.)		24.00
Overhead (2.0 hrs. @ $18.50 per hr.)		37.00
Total standard cost	$	81.00

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		25,000
Depreciationmachinery		71,000
Taxes and insurance		17,000
Supervision		307,000
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 (61,500 Ibs. @ $5.20 per lb.)				$	319,800
Direct labor (29,000 hrs. @ $12.20 per hr.)					353,800
Overhead costs
Indirect materials	$	41,400
Indirect labor		176,350
Power		17,250
Repairs and maintenance		34,500
Depreciationbuilding		25,000
Depreciationmachinery		95,850
Taxes and insurance		15,300
Supervision		307,000			712,650
Total costs				$	1,386,250

9.

value: 10.00 points

Required information

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.

10.

value: 10.00 points

Required information

3.	Compute the direct materials cost variance, including its price and quantity variances.

11.

value: 10.00 points

Required information

4.	Compute the direct labor cost variance, including its rate and efficiency variances.

12.

value: 10.00 points

Required information

5.	Prepare a detailed overhead variance report that shows the variances for individual items of overhead.