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

Direct materials (4.0 pounds @ $6.00 per pound)$ 24.00Direct labor (1.8 hours @ $10.00 per hour)18.00Overhead (1.8 hours @ $18.50 per hour)33.30Standard cost per unit$ 75.30

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$ 15,000Indirect labor90,000Power15,000Maintenance30,000Total variable overhead costs150,000Fixed overhead costs DepreciationBuilding24,000DepreciationMachinery71,000Taxes and insurance18,000Supervisory salaries236,500Total fixed overhead costs349,500Total overhead costs$ 499,500

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

Direct materials (61,000 pounds @ $6.20 per pound) $ 378,200Direct labor (22,000 hours @ $10.20 per hour) 224,400Overhead costs Indirect materials$ 41,450 Indirect labor176,000 Power17,250 Maintenance34,500 DepreciationBuilding24,000 DepreciationMachinery95,850 Taxes and insurance16,200 Supervisory salaries236,500641,750Total costs $ 1,244,350

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.

Note: 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.

Note: 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.

Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.