Antuan Company setthe following standard costs per unit for its product. Direct materials [4.6 pounds @ $5.66 per pound) $ 26.66 Direct labor (1.? hours @ $13.66 per hour) 22.16 Overhead {1.? hours @ $13.56 per hour) 31.45 Standard cost per unit $ ?3.55 The standard overhead rate ($18.50 per direct labor hour} is based on a predicted activity level of 75% ofthe factorv's capacity of 20,600 units per month. Following are the company's budgeted overhead costs per month at the 75% capacity level. Overhead Budget {?5% Capacity) Variable overhead costs Indirect materials $ 15,666 Indirect labor 25,666 Power 15,666 Maintenance 36,666 Total variable overhead costs 135,666 Fixed overhead costs DepreciationBuilding 24,666 DepreciationMachinery ?2,666 Taxes and insurance 16,666 Supervisory salaries 224,?56 Total fixed overhead costs 335:759 Total overhead costs $ 421,?56 The company incurred the following actual costs when it operated at ?5% ofcapacitv in October. Direct materials [66,566 pounds @ $5.26 per pound} $ 314,666 Direct labor (26,666 hours @ $13.16 per hour) 262,666 Overhead costs Indirect materials 5 41,566 Indirect labor 1?6,656 Power 1?,256 Maintenance 34,566 DepreciationBuilding 24,666 DepreciationMachinery 9?,266 Taxes and insurance 14,466 Supervisory salaries 2245759 5355459 Total costs $ 1,26?,656 ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume 75% of capacity Production level achieved 75% of capacity Volume Variance No variance Flexible Budget Actual Results Variances Favorable or Unfavorable Variable overhead costs Indirect materials $ 15,000 $ 41,500 $ 26,500 Unfavorable Indirect labor 75,000 176,850 101,850 Unfavorable Power 15,000 17,250 2,250 Unfavorable Maintenance 30,000 34,500 4,500 Unfavorable Total variable overhead costs 135,000 270, 100 135,100 Unfavorable Fixed overhead costs Depreciation-Building 24,000 24,000 0 No variance Depreciation-Machinery 72,000 97,200 25,200 Unfavorable Taxes and insurance 16,000 14, 100 1,900 Favorable Supervisory salaries 224,750 224,750 O No variance Total fixed overhead costs 336,750 360,050 Total overhead costs 471,750 $ 630, 150 $ 158,400 Unfavorable Volume Variance Budgeted (flexible) overhead Standard overhead applied Volume variance 0 Total overhead variance