Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $6.00 per pound) Direct labor (2.0 hours @ $13.00 per hour) Overhead (2.0 hours @ $18.50 per hour) Standard cost per unit $ 24.00 26.00 37.00 $ 87.00 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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 (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor Power 75,000 15,000 Maintenance 45,000 Total variable overhead costs 150,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery 23,000 70,000 Taxes and insurance 17,000 Supervisory salaries Total fixed overhead costs 295,000 405,000 Total overhead costs $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 pounds @ $6.20 per pound) Direct labor (21,000 hours @ $13.20 per hour) Overhead costs $ 378,200 277,200 Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,300 176,500 17,250 51,750 23,000 94,500 15,300 295,000 714,600 $ 1,370,000 Problem 8-3A (Algo) Part 4 4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indica effect of each variance by selecting favorable, unfavorable, or no variance.) Expected production volume Production level achieved Volume Variance Variable overhead costs ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Flexible Budget Actual Results Variances Favorable/Unfavorable of 41 ok nt nces Expected production volume Production level achieved Volume Variance ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Variable overhead costs. Fixed overhead costs Total overhead costs Volume Variance Flexible Budget Actual Results Variances Favorable/Unfavorable