Antuan Company set the following standard costs for one unit of its product Direct materials (4.0 lbs. @ $5.00 per Ib.) $20.00 Direct labor (1.7 hrs. $13.00 per hr.) 22.10 Overhead (1.7 hrs. @ $18.50 per hr.) 31.45 Total standard cost $73.55 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 labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $135,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 72,000 Taxes and insurance 17,000 Supervision 223,250 Total fixed overhead costs 336, 750 Total overhead costs $471, 750 The company incurred the following actual costs when it operated at 75% of capacity in October $317, 200 266,000 Direct materials (61,000 lbs. @ $5.20 per 16.) Direct labor (20,000 hrs. $13.30 per hr.) Overhead costs Indirect materials $ 41,400 Indirect labor 176,050 Power 17,250 Repairs and maintenance 34,500 Depreciation-Building 24,000 Depreciation Machinery 97,200 Taxes and insurance 15,300 Supervision 223.750 Total costs 629,450 $1,212,650 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. TER For Month Ended October 31 Flexible Budget Variable Amount Total Fixed 65% of Cost capacity Flexible Budget for 75% of capacity per Unit 85% of capacity Sales (in units) Variable overhead costs 0.00 0 0 0 Fixed overhead costs 0 3. Compute the direct materials cost variance, including its price and quantity variances AQ - Actual Quantity SQ - Standard Quantity AP = Actual Price SP- Standard Price Actual Cost Standard Cost 0 $ 0 A 0 0 4. Compute the direct labor cost variance, including its rate and efficiency variances, AH = Actual Hours SH - Standard Hours AR - Actual Rate SR = Standard Rate Actual Cost Standard Cost $ $ 0 5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume variance Flexible Budget Actual Results Variances Fav. TUnfav. Variable costs Fixed costs