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 lbs. $5.00 per Ib.) Direct labor (2.0 hrs. $13.00 per hr.) Overhead (2.0 hrs. @ $18.50 per hr.) Total standard cost $15.00 26.00 37.00 $78.00 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 (758 Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 90,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $150,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 71,000 Taxes and insurance 18,000 Supervision 292,000 Total fixed overhead conts 405,000 Total overhead costs $555,000 The company incurred the following actual costs when it operated at 75% of capacity in October 237,150 305, 900 Direct materials (46,500 Ibs. @ $5.10 per lb.) Direct labor (23,000 hrs. $13.30 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,450 176,300 17,250 34,500 24,000 95,850 16,200 292,000 697,550 $1,240,600 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 Fixed costs Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume variance Flexible Budget Actual Results Variable costs Variances Fav. / Unfav. Fixed costs Total overhead costs