Check (The following information applies to the questions displayed below.) Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $6.00 per Ib.) Direct labor (2.0 hrs. @ $11.00 per hr.) Overhead (2.0 hrs. @ $18.50 per hr.) Total standard cost $24.00 22.00 37.00 $83.00 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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 $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 24,000 DepreciationMachinery 70,000 Taxes and insurance 17,000 Supervision 309,000 Total fixed overhead costs $135,000 420,000 $555,000 Total overhead costs Total fixed overhead costs Total overhead costs 420,000 $555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 378, 200 235, 200 Direct materials (61,000 Ibs. @ $6.20 per lb.) Direct labor (21,000 hrs. @ $11.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,900 176,800 17,250 34,500 24,000 94,500 15, 300 309,000 713,250 $1,326,650 Problem 08-3A Part 1&2 Required: 1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed. Problem 08-3A Part 3 3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Actual Cost 0 $ O $ 0 $ 0 O ncluding its price and quantity variances. (Indicate the effect of each variance lo variance.) Standard Cost 0 0 0 0 0