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

Direct materials (4.0 Ibs. @ $6.00 per Ib.)	$	24.00
Direct labor (2.0 hrs. @ $11.00 per hr.)		22.00
Overhead (2.0 hrs. @ $18.50 per hr.)		37.00
Total standard cost	$	83.00

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		90,000
Power		15,000
Repairs and maintenance		30,000
Total variable overhead costs				$	150,000
Fixed overhead costs
Depreciationbuilding		24,000
Depreciationmachinery		71,000
Taxes and insurance		17,000
Supervision		293,000
Total fixed overhead costs					405,000
Total overhead costs				$	555,000

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

Direct materials (61,000 Ibs. @ $6.10 per lb.)				$	372,100
Direct labor (22,000 hrs. @ $11.20 per hr.)					246,400
Overhead costs
Indirect materials	$	41,850
Indirect labor		176,150
Power		17,250
Repairs and maintenance		34,500
Depreciationbuilding		24,000
Depreciationmachinery		95,850
Taxes and insurance		15,300
Supervision		293,000			697,900
Total costs				$	1,316,400

Problem 21-3A Part 1&2 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 Variable Amount Total Fixed Flexible Budget for 75% of capacity 65% of capacity 85% of capacity Cost per Unit Sales (in units) Variable overhead costs Fixed overhead costs Total overhead costs Problem 21-3A Part 3 3. Compute the direct materials cost variance, including its price and quantity variances. Actual Cost Standard Cost Problem 21-3A Part 4 4. Compute the direct labor cost variance, including its rate and efficiency variances Actual Cost Standard Cost Problem 21-3A Part 5 5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead KWIKEZE KWIKEZE KWIKEZE KWIKEZE COMPANY COMPANY COMPANY COMPANY ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume variance Flexible Actual Variances Unfav Flexible Actual Fav. / Budget Results Variances a Variable costs Fixed costs Total overhead costs