Problem 08-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. @ $5.00 per Ib.) Direct labor (1.9 hrs. @ $11.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) Total standard cost $15.00 20.90 35.15 $71.05 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 Depreciation-Machinery 71,000 Taxes and insurance 17,000 Supervision 280, 250 Total fixed overhead costs Total overhead costs $135,000 392,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 236,600 257,600 Direct materials (45,500 Ibs. @ $5.20 per lb.) Direct labor (23,000 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 $ 41,650 176,950 17,250 34,500 24,000 95,850 15,300 280, 250 685,750 $1,179,950 ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Flexible Budget for Variable Amount Total Fixed 65% of 75% of 85% of Cost capacity capacity capacity per Unit Sales (in units) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance $ 0.00 0 0 0 Fixed overhead costs 0 0 0 0 Total overhead costs