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

Direct materials $(4\mathrm{.}0$ pounds @ $$6\mathrm{.}00$ per pound$)$ $ $24\mathrm{.}00$

Direct labor $(1\mathrm{.}7$ hours @ $$11\mathrm{.}00$ per hour$)18\mathrm{.}70$

Overhead $(1\mathrm{.}7$ hours @ $$18\mathrm{.}50$ per hour$)31\mathrm{.}45$

Standard cost per unit $ $74\mathrm{.}15$

The standard overhead rate $($$$18\mathrm{.}50$ per direct labor hour$)$ is based on a predicted activity level of $75\%$ of the factory$$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 $75,000$

Power $15,000$

Maintenance $30,000$

Total variable overhead costs $135,000$

Fixed overhead costs

Depreciation$$Building $23,000$

Depreciation$$Machinery $72,000$

Taxes and insurance $16,000$

Supervisory salaries $225,750$

Total fixed overhead costs $336,750$

Total overhead costs $ $471,750$

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

Direct materials $(61,000$ pounds @ $$6\mathrm{.}20$ per pound$)$ $ $378,200$

Direct labor $(21,000$ hours @ $$11\mathrm{.}30$ per hour$)237,300$

Overhead costs

Indirect materials $ $41,450$

Indirect labor $176,750$

Power $17,250$

Maintenance $34,500$

Depreciation$$Building $23,000$

Depreciation$$Machinery $97,200$

Taxes and insurance $14,400$

Supervisory salaries $225,750630,300$

Total costs $ $1,245,800$

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 overhead.