Problem 08-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, P4

Required Information 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 (3.2 Ibs. @ $6.00 per Ib.) Direct labor (1.8 hrs. @ $13.00 per hr.) Overhead (1.8 hrs. @ $18.50 per hr.) Total standard cost $18.00 23.40 33.30 $74.79 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 $ 15,00 Indirect labor 75, eee Power 15, eee Repairs and maintenance 30, eee Total variable overhead costs Fixed overhead costs Depreciation-Building 25,000 Depreciation-Machinery 70,00 Taxes and insurance 17,00 Supervision 252, see Total fixed overhead costs Total overhead costs $135,000 364,500 $499,500 The company Incurred the following actual costs when it operated at 75% of capacity in October $ 277,550 268, eee Direct materials (45,500 lbs. @ $6.10 per lb.) Direct labor (20,000 hrs. @ $13.40 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,150 176,150 17,250 34,500 25,000 94,500 15,300 252, 580 656, 350 $1,201,989 Problem 08-3A Part 5 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 Total overhead costs