Antuan Company set the following standard costs for one unit of its product. $20.00 Direct materials (4.0 Ibs. @ $5.00 per Ib.) Direct labor (1.9 hrs. @ $11.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) 20.90 35.15 Total standard cost $76.05 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 (754 Capacity) Variable overhead costs $ 15,000 75,000 Indirect materials Indirect labor Power 15,000 30,000 $135,000 Repairs and maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead costs 23,000 72,000 18,000 279, 250 392, 250 $527, 250 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. $ 319, 800 262,200 Direct materials (61,500 Ibs. @ $5.20 per lb.) Direct labor (23,000 hrs. @ $11.40 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation Building Depreciation-Machinery Taxes and insurance Supervision $ 41,600 176,000 17,250 34,500 23,000 97,200 16, 200 279, 250 685,000 Total costs $1,267,000 5. Prepare a detailed overhead varlance report that shows the variances for Individual items of overhead. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and No varlance.) ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume variance Flexible Budget Actual Results Variances Fav. / Unfav. Variable costs Fixed costs Total overhead costs