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

Direct materials (3.0 pounds @ $5.00 per pound)	$ 15.00
Direct labor (1.7 hours @ $12.00 per hour)	20.40
Overhead (1.7 hours @ $18.50 per hour)	31.45
Standard cost per unit	$ 66.85

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	193,750
Total fixed overhead costs	306,750
Total overhead costs	$ 471,750

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

Direct materials (45,500 pounds @ $5.10 per pound)		$ 232,050
Direct labor (19,000 hours @ $12.30 per hour)		233,700
Overhead costs
Indirect materials	$ 41,700
Indirect labor	176,900
Power	34,500
Maintenance	34,500
DepreciationBuilding	24,000
DepreciationMachinery	97,200
Taxes and insurance	15,300
Supervisory salaries	193,750	617,850
Total costs		$ 1,083,600

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.)

ANTUAN COMPANY
Overhead Variance Report
For Month Ended October 31
Expected production volume
Production level achieved
Volume Variance
	Flexible Budget	Actual Results	Variances	Favorable/Unfavorable
Variable overhead costs
Fixed overhead costs
Total overhead costs
Volume Variance
Volume variance			$0
Total overhead variance