Antuan Company set the following standard costs for one unit of its product. Direct materials (5.0 Ibs. e $6.00 per Ib.) Direct labor (1.8 hrs. e $14.00 per hr.) Overhead (1.8 hrs. e $18.50 per hr.) Total standard cost $30.00 25.20 33.30 $88.50 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 Indirect labor Power Repairs and maintenance $ 30,000 75,000 30,000 30,000 Total variable overhead costs $165,000 Fixed overhead costs Depreciation-Building Depreciation- Machinery Taxes and in urance Supervision Total fixed overhead costa tal overhead costs 24,000 72,000 17,000 221500 334 500 $499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (76,000 Ibs. $6.20 per lb.) Direct labor (21,000 hrs. $14.30 per hr.) $ 471,200 300,300 Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision 41,700 177,000 34,500 34,500 24,000 97,200 15,300 221,500645,700 $1,417,200 Total costs 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. r 4 ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Variable Amount Total Fixed Flexible Budget for 75% of 65% of 85% of Sales (in units) Variable overhead costs ces Indirect materials Indirect labor Power Repairs and maintenance 0.00 otal variable costs Fixed overhead costs Depreciation-Building Deprecia 3. Compute the direct materials cost variance, including its price and quantity variances. AQ Actual Quantity #4 SQ Standard Quantity AP Actual Price SP Standard Price es 0 or 4. Compute the direct labor cost variance, including its rate and efficiency vaniances. 3 of 4 AH Actual Hours SH Standard Hours AR Actual Rate SR Standard Rate ok Actual Cost Standard Cost ces