Antuan Company set the following standard costs for one unit of its product.

Direct materials (4.0 Ibs. @ $4.00 per Ib.)$16.00

Direct labor (1.8 hrs. @ $11.00 per hr.)19.80

Overhead (1.8 hrs. @ $18.50 per hr.)33.30

Total standard cost$69.10

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 labor75,000Power15,000

Repairs and maintenance30,000

Total variable overhead costs$135,000

Fixed overhead costs

DepreciationBuilding24,000

DepreciationMachinery72,000

Taxes and insurance16,000

Supervision252,500

Total fixed overhead costs364,500

Total overhead costs$499,500

The company incurred the following actual costs when it operated at 75% of capacity in October.

Direct materials (61,000 Ibs. @ $4.10 per lb.)$250,100

Direct labor (22,000 hrs. @ $11.10 per hr.)244,200

Overhead costs

Indirect materials$41,400

Indirect labor176,450

Power17,250

Repairs and maintenance34,500

DepreciationBuilding24,000

DepreciationMachinery97,200

Taxes and insurance14,400

Supervision252,500657,700

Total costs$1,152,000

1- 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.

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.

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

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