Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $14.00 per hour) Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit $ 20.00 25.20 33.30 $ 78.50 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 Indirect labor $ 15,000 75,000 Power 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs 24,000 71,000 18,000 251,500 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries. Total fixed overhead costs Total overhead costs 364,500 $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,500 pounds @ $5.10 per pound) Direct labor (20,000 hours @ $14.30 per hour) Overhead costs Indirect materials Indirect labor $ 41,750 176,350 $ 313,650 286,000 Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,750 176,350 17,250 34,500 24,000 95,850 16,200 251,500 657,400 $ 1,257,050 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.) 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 Flexible Budget Actual Results Variances Favorable/Unfavorable Total overhead costs Volume Variance Volume variance Total overhead variance