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

Direct materials (4.0 Ibs. @ $5.00 per Ib.)	$	20.00
Direct labor (1.7 hrs. @ $12.00 per hr.)		20.40
Overhead (1.7 hrs. @ $18.50 per hr.)		31.45
Total standard cost	$	71.85

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		90,000
Power		15,000
Repairs and maintenance		30,000
Total variable overhead costs				$	150,000
Fixed overhead costs
DepreciationBuilding		25,000
DepreciationMachinery		71,000
Taxes and insurance		18,000
Supervision		207,750
Total fixed overhead costs					321,750
Total overhead costs				$	471,750

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

Direct materials (61,500 Ibs. @ $5.20 per lb.)				$	319,800
Direct labor (24,000 hrs. @ $12.30 per hr.)					295,200
Overhead costs
Indirect materials	$	41,950
Indirect labor		176,150
Power		17,250
Repairs and maintenance		34,500
DepreciationBuilding		25,000
DepreciationMachinery		95,850
Taxes and insurance		16,200
Supervision		207,750			614,650
Total costs				$	1,229,650

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

ANTUAN COMPANY

KWIKEZE COMPANY

KWIKEZE COMPANY

KWIKEZE COMPANY

KWIKEZE 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

Problem 23-5A Part 1&2 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 Amount Total Fixed 65% of capacity Flexible Budget for 75% of capacity 85% of capacity per Unit Cost Sales (n units) Variable costs Fixed costs Total overhead costs