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 (2.0 hrs. @ $12.00 per hr.)		24.00
Overhead (2.0 hrs. @ $18.50 per hr.)		37.00
Total standard cost	$	77.00

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		70,000
Taxes and insurance		17,000
Supervision		308,000
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. @ $4.10 per lb.)

$

252,150

Direct labor (22,000 hrs. @ $12.10 per hr.)

266,200

Overhead costs

Indirect materials

$

41,950

Indirect labor

176,700

Power

17,250

Repairs and maintenance

34,500

DepreciationBuilding

25,000

DepreciationMachinery

94,500

Taxes and insurance

15,300

Supervision

308,000

713,200

Total costs

$

1,231,550

ANTUAN COMPANY

KWIKEZE COMPANY

KWIKEZE COMPANY

KWIKEZE COMPANY

KWIKEZE 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