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

Direct materials (6 Ibs. @ $5 per Ib.)	$	30
Direct labor (2 hrs. @ $17 per hr.)		34
Overhead (2 hrs. @ $18.50 per hr.)		37
Total standard cost	$	101

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% level.

Overhead Budget (75% Capacity)

Variable overhead costs
Indirect materials	$	45,000
Indirect labor		180,000
Power		45,000
Repairs and maintenance		90,000
Total variable overhead costs				$	360,000
Fixed overhead costs
Depreciationbuilding		24,000
Depreciationmachinery		80,000
Taxes and insurance		12,000
Supervision		79,000
Total fixed overhead costs					195,000
Total overhead costs				$	555,000

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

Direct materials (91,000 Ibs. @ $5.10 per lb.)				$	464,100
Direct labor (30,500 hrs. @ $17.25 per hr.)					526,125
Overhead costs
Indirect materials	$	44,250
Indirect labor		177,750
Power		43,000
Repairs and maintenance		96,000
Depreciationbuilding		24,000
Depreciationmachinery		75,000
Taxes and insurance		11,500
Supervision		89,000			560,500
Total costs				$	1,550,725

1.

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.

2.	Compute the direct materials cost variance, including its price and quantity variances. (Round actual price to 2 decimal places.)

3.

	Compute the direct labor cost variance, including its rate and efficiency variances. (Round actual rate to 2 decimal places.)

4.

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