Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. @ $6.00 per Ib.) $18.00 Direct labor (1.8 hrs. @ $11.00 per hr.) 19.80 Overhead (1.8 hrs. @ $18.50 per hr.) 33.30 Total standard cost $71.10 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 Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 71,000 Taxes and insurance 18,000 Supervision 251,500 Total fixed overhead costs Total overhead costs $135,000 364,500 $499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 285,200 216,600 Direct materials (46,000 Ibs. @ $6.20 per lb.) Direct labor (19,000 hrs. @ $11.40 per hr.) Overhead costs Indirect materials $ 41,850 Indirect labor 176,550 Power 17,250 Repairs and maintenance 34,500 Depreciation-Building 24,000 Depreciation-Machinery 95,850 Taxes and insurance 16,200 Supervision 251,500 Total costs 657,700 $1,159,500 Required: &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. 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. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Variable Total Fixed 65% of Amount per Cost capacity Unit Flexible Budget for 75% of capacity 85% of capacity Sales (in units) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance $ 0.00 No Total variable costs Fixed overhead costs DepreciationBuilding Depreciation Machinery Taxes and insurance Supervision Total fixed costs 0 0 0 0 Total overhead costs 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 Standard Cost AQ Actual Cost X 1 x AP AQT X SQL X SP x TX $ | $ Direct materials price variance $ 0 ol Direct materials quantity variance Total direct materials variance 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 | X | Standard Cost X AH AR AH | X SR SH SR XX $ 0 $ 0 | $ 0 Direct labor rate variance Direct labor efficiency variance Total direct labor variance 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 75% of capacity 75% of capacity Expected production volume Production level achieved Volume variance Flexible Budget Actual Results Variances Fav. / Unfav. Variable costs Indirect materials Indirect labor Power Repairs and maintenance Total variable costs Fixed costs Depreciation Building Depreciation Machinery Taxes and insurance Supervision Total fixed costs Total overhead costs