Antuan Company set the following standard costs for one unit of its product Direct materials (4.0 lbs. $4.00 per Ib.) Direct labor (1.9 hrs. $11.00 per hr.) Overhead (1.9 hrs. $18.50 per hr.) Total standard cost to 4 The predetermined overhead rate (518.50 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 Capacity) Overhead Budget Variable overhead costs Indirect materials Indirect labor $ 15,00 15.000 $135,000 24.0 Repairs and maintenance Total variable overhead costs Fixed overhead costs Depreciation Building Depreciation Machinery Taxes and insurance Supervision Total fixed overhead costs Total yerhead costs 281,250 392, 25e $527.250 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (60, 500 lbs. 14.20 per lb.) Direct labor (20,00 hrs. 511. per hr.) Overhead costs Indirect materials Indirect labor $41,150 176,450 17.250 Repairs and maintenance Depreciation building Depreciation-machinery Taxes and insurance Supervision Total costs 24,00 94,500 15.30 Required: 162. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 858 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 65% of per Unit Cost capacity Flexible Budget for 75% of capacity 85% of capacity Sales (in units) Variable overhead costs Indirect materials 0001 Fixed overhead costs Total overhead costs Taxes and insurance Supervision Total costs 15,300 281,250 684,400 $1,164,500 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 3 4 5 of 9 Total costs 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