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 (1.6 hours @ $14.00 per hour)	22.40
Overhead (1.6 hours @ $18.50 per hour)	29.60
Standard cost per unit	$ 72.00

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	$ 30,000
Indirect labor	75,000
Power	30,000
Maintenance	30,000
Total variable overhead costs	165,000
Fixed overhead costs
DepreciationBuilding	24,000
DepreciationMachinery	72,000
Taxes and insurance	17,000
Supervisory salaries	166,000
Total fixed overhead costs	279,000
Total overhead costs	$ 444,000

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

Direct materials (61,000 pounds @ $5.10 per pound)		$ 311,100
Direct labor (20,000 hours @ $14.40 per hour)		288,000
Overhead costs
Indirect materials	$ 41,450
Indirect labor	176,450
Power	34,500
Maintenance	34,500
DepreciationBuilding	24,000
DepreciationMachinery	97,200
Taxes and insurance	15,300
Supervisory salaries	166,000	589,400
Total costs		$ 1,188,500

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. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)

3. Compute the direct labor variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to two decimal places.

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.)