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

The standard overhead rate $($ $$18\mathrm{.}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.

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

Required:

Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the $65\%,75\%,$ and $85\%$ capacity

levels.

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.