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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

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. @ $13.00 per hr.) 26.00
Overhead (2.0 hrs. @ $18.50 per hr.) 37.00
Total standard cost $ 87.00

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 24,000
DepreciationMachinery 71,000
Taxes and insurance 16,000
Supervision 309,000
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 (61,000 Ibs. @ $6.10 per lb.) $ 372,100
Direct labor (21,000 hrs. @ $13.20 per hr.) 277,200
Overhead costs
Indirect materials $ 41,450
Indirect labor 176,400
Power 17,250
Repairs and maintenance 34,500
DepreciationBuilding 24,000
DepreciationMachinery 95,850
Taxes and insurance 14,400
Supervision 309,000 712,850
Total costs $ 1,362,150

rev: 03_28_2018_QC_CS-122864

5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead.

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