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 (5.0 Ibs. @ $5.00 per Ib. ) Direct labor (1.9 hrs. @ $14.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) Total standard cost $ 25.00 26.60 35.15 $ 86.75 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 25,000 Depreciation-Machinery 71,000 Taxes and insurance 17,000 Supervision 279, 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. $ 395, 200 282,000 Direct materials (76,000 Ibs. @ $5.20 per lb.) Direct labor (20,000 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 $ 41,150 176,600 17,250 34,500 25,000 95,850 15,300 279, 250 684,900 $1,362,100 CHELL VI Calii varanle NY SIELLIMU . . . Required information 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