Antuan Company set the following standard costs per unit for its product. $ Direct materials (4.0 pounds @ $6.00 per pound) 24.00 Direct labor (1.7 hours @ $10.00 per hour) 17.00 31.45 Overhead (1.7 hours @ $18.58 per hour) $ Standard cost per unit 72.45 The standard overhead rate ($18.50 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 Indirect labor $ 15,000 75,000 Power 15,000 Maintenance 30,000 Total variable overhead costs 135,000 24,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries 72,000 17,000 223,750 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 @ $6.10 per pound) $ 372,100 Direct labor (20,000 hours @ $10.30 per hour) 206,000 Overhead costs Indirect materials. 41,500 Indirect labor 176,950 17,250 Power Maintenance Depreciation-Building Depreciation-Machinery 34,500 24,000 97,200 15,300 Taxes and insurance Supervisory salaries 223,750 630,450 Total costs 1,208,550 Required; 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. ANTUAN COMPANY Flexible Overhead Budgets Total For Month Ended October 31 Variable Amount per Unit Flexible Budget at Capacity Level of Fixed Cost 65% 75% 85% Production in units) Vanable overhead costs Fixed overhead costs Total overhead costs 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.) Actual Cost Standard Cest 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.) Standart Cost Actual Cost 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 Total overhead variance