Help 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 @ $12.00 per hour) $ 24.00 Overhead (1.8 hours @ $18.50 per hour) 21.60 33.30 Standard cost per unit $ 78.90 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 $ 15,000 Indirect labor 75,000 Power 15,000 Maintenance 45,000 Total variable overhead costs 150,000 Fixed overhead costs Depreciation-Building 25,000 Depreciation-Machinery 72,000 Taxes and insurance 16,000 Supervisory salaries 236,500 Total fixed overhead costs 349,500 Total overhead costs $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (60,580 pounds @ $6.10 per pound) $ 369, 050 Direct labor (20,000 hours @ $12.30 per hour) 246,000 Overhead costs Indirect materials $ 41,650 Indirect labor 176,250 Power 17,250 Maintenance 51,750 Depreciation-Building 25,000 Depreciation-Machinery 97,200 Taxes and insurance 14,400 236,500 Supervisory salaries 660,000 Total costs $ 1,275,050 Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs 176,250 17,250 51.750 25,000 97,200 14,400 236,500 660,00 $ 1,275,050 2. Compute the direct materials variance, including its price and quantity variances, (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Standard Cost 0 $ 0 $ D $ 0 3. Compute the direct labor variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour answers to two decimal places.) Actual Cost Standard Cont $ 0 $ 0 $ ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume Variance Flexible Budget Actual Results Variances Favorable/Unfavorable Variable overhead costs Fixed overhead costs Total overhead costs Volume Variance 0 Volume variance Total overhead variance 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 Overhead Budgets Variable Amount Total Fixed Flexible Budget at Capacity Level of per Unit Cost 65% 75% 85% For Month Ended October 31 Production (in units) Variable overhead costs Fixed overhead costs Total overhead costs