d Required information [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $6.00 per pound) Direct labor (1.8 hours @ $11.00 per hour) Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit $ 24.00 19.80 33.30 $ 77.10 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 Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs $ 15,000 75,000 15,000 30,000 135,000 25,000 72,000 17,000 250,500 364,500 $ 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) Direct labor (20,000 hours @ $11.20 per hour) Overhead costs. Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,950 176,450 17,250 34,500 25,000 97,200 15,300 250,500 $ 378,200 224,000 658,150 $ 1,260,350 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. ANTUAN COMPANY Flexible Budget at Capacity Level of Flexible Overhead Budgets Variable Total For Month Ended October Amount per Fixed 31 Unit Cost 65% Production (in units) Variable overhead costs Indirect materials Indirect labor Power Maintenance Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries $ 0.00 75% 85% $13,000 $ 15,000 $ 17,000 65,000 75,000 85,000 13,000 15,000 17,000 26,000 30,000 34,000 $117,000 $ 135,000 $ 153,000 > $ 25,000 $ 25,000 97,200 97,200 15,300 x 250,500 15,300 x 250,500 $ 0 $ 388,000 $ 388,000 $ 0 Total overhead costs **Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 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. Actual Cost X 0 0 $ 0 0 0 $ $ 0 0 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 0 Standard Cost 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. Actual Cost 0 0 0 0 $ 0 $ 0 0 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Standard Cost 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. ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 75% of capacity Expected production volume Production level achieved 75% of capacity Volume Variance No variance Flexible Budget Actual Results Favorable or Variances Unfavorable Variable overhead costs Indirect materials $ 15,000 $ 41,750 $ Direct labor 75,000 176,200 26,750 101,200 Unfavorable Unfavorable Power Maintenance 15,000 17,250 2,250 Unfavorable 30,000 34,500 4,500 Unfavorable Total variable overhead costs 135,000 269,700 Fixed overhead costs Depreciation-Building Depreciation-Machinery 24,000 x 24,000 No variance 70,000 94,500 x 24,500 Taxes and insurance Supervisory salaries 17,000 253,500 x 15,300 253,500 x 1,700 Unfavorable Favorable No variance Total fixed overhead costs Total overhead costs Volume Variance Standard overhead applied Budgeted (flexible) overhead Volume variance Total overhead variance 364,500 387,300 SASASA $ 751,800 x $ 404,700 x $ 347,100 Unfavorable *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.