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 @ $13.00 per hour)	20.80
Overhead (1.6 hours @ $18.50 per hour)	29.60
Standard cost per unit	$ 70.40

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	$ 15,000
Indirect labor	75,000
Power	15,000
Maintenance	30,000
Total variable overhead costs	135,000
Fixed overhead costs
DepreciationBuilding	25,000
DepreciationMachinery	70,000
Taxes and insurance	17,000
Supervisory salaries	197,000
Total fixed overhead costs	309,000
Total overhead costs	$ 444,000

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

Direct materials (61,500 pounds @ $5.20 per pound)		$ 319,800
Direct labor (22,000 hours @ $13.30 per hour)		292,600
Overhead costs
Indirect materials	$ 41,850
Indirect labor	176,050
Power	17,250
Maintenance	34,500
DepreciationBuilding	25,000
DepreciationMachinery	94,500
Taxes and insurance	15,300
Supervisory salaries	197,000	601,450
Total costs		$ 1,213,850

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.)