Direct materials (4.2 Ibs. @ $5.00 per Ib.) Direct labor (1.6 hrs. $14.00 per hr.) Overhead (1.6 hrs. @$18.50 per hr.) Total standard cost $20.ee 22.40 29.60 $72.ee 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 $135,000 Fixed overhead costs Depreciation-Building 23,000 Depreciation-Machinery 70,000 Taxes and insurance 17,000 Supervision 199,000 Tatal ivart Auerhan A TAG ARA 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, eee Repairs and maintenance 30,000 Total variable overhead costs $135,000 Fixed overhead costs Depreciation-Building 23,000 Depreciation-Machinery 70,000 Taxes and insurance 17,000 Supervision 199,000 Total fixed overhead costs 309, eee Total overhead costs $444,000 311,100 324,300 Direct materials (61,000 Ibs. @ $5.10 per lb.) Direct labor (23,000 hrs. @ $14.10 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,650 176,150 17,250 34,500 23, eee 94,500 15,300 199,000 601,350 $1,236,750 5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead (Indicate the effect of each variance by selecting for favorable, unfavorable, and 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 Fav./Unfav. Variable costs Flexible Budget Actual Results Variances Fav. / Unfav. Variable costs Fixed costs Total overhead costs