Antuan Company set the following standard costs for one unit of its product. Direct materials (6 lbs. @ $5 per Ib.) 30 Direct labor (2 hrs. @ $17 per hr.) 34 Overhead (2 hrs. @ $18.50 per hr.) 37 Total standard cost $ 101 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 $ 45,000 Indirect labor 180,000 Pover 45,000 Repairs and maintenance 90,000 Total variable overhead coats Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 80,000 Taxes and insurance 12,000 Supervision 79,000 Total fixed overhead costs Total overhead coats $360,000 195,000 $555,000 The company incurred the following actual costs when it operated at 75% of capacity in October 464,100 526,125 Direct materials (91,000 Tbs. 05.10 per 1b. Direct inbor (30,500 hrs. @ $17.25 per hr.) Overhead coats Indirect materials $ 44,250 Indirect labor 177,750 Pouer 43,000 Repairs and maintenance 96,000 Depreciation Building 24,000 Depreciation-Machinery 75,000 Taxes and insurance 11,500 Supervision 89,000 Total costa 560, 500 $1,550, 725 Required: 182. 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 Variable Total Fixed 65% of 75% of 85% of Amount per Unit Cost capacity capacity capacity Sales (in units) Variable overhead costs $ 0.00 0 0 Fixed overhead costs $ 05 05 05 Total overhead costs 3. Compute the direct matendscos variance including its price and quantity variances (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Achal Cost Standard Cost 5 D 5 0 5 0 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 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