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

Direct materials (4.0 pounds @ $5.00 per pound) $ 20.00

Direct labor (1.8 hours @ $10.00 per hour) 18.00

Overhead (1.8 hours @ $18.50 per hour) 33.30

Standard cost per unit is $ 71.30

The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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 75,000

Power 15,000

Maintenance 30,000

Total variable overhead costs 135,000

Fixed overhead costs

DepreciationBuilding 24,000

DepreciationMachinery 72,000

Taxes and insurance 17,000

Supervisory salaries 251,500

Total fixed overhead costs 364,500

Total overhead costs $ 499,500

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

Direct materials (61,000 pounds @ $5.20 per pound) $ 317,200

Direct labor (19,000 hours @ $10.10 per hour) 191,900

Overhead costs Indirect materials $ 41,450

Indirect labor 176,650

Power 17,250

Maintenance 34,500

DepreciationBuilding 24,000

DepreciationMachinery 97,200

Taxes and insurance 15,300

Supervisory salaries 251,500 657,850

Total costs $ 1,166,950

Required:

1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels.

2. Compute the direct materials variance, including its price and quantity variances

3. Compute the direct labor variance, including its rate and efficiency variances.

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