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

Direct materials (6 pounds @ $5 per pound)	$ 30
Direct labor (2 hours @ $17 per hour)	34
Overhead (2 hours @ $18.50 per hour)	37
Standard cost per unit	$ 101

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	$ 45,000
Indirect labor	180,000
Power	45,000
Maintenance	90,000
Total variable overhead costs	360,000
Fixed overhead costs
DepreciationBuilding	24,000
DepreciationMachinery	80,000
Taxes and insurance	12,000
Supervisory salaries	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 pounds @ $5.10 per pound)		$ 464,100
Direct labor (30,500 hours @ $17.25 per hour)		526,125
Overhead costs
Indirect materials	$ 44,250
Indirect labor	177,750
Power	43,000
Maintenance	96,000
DepreciationBuilding	24,000
DepreciationMachinery	75,000
Taxes and insurance	11,500
Supervisory salaries	89,000	560,500
Total costs		$ 1,550,725

4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)

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