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Problem 2 1 - 3 A ( Algo ) Flexible overhead budget; materials, labor, and overhead variances; and overhead variance report LO P 1 ,

Problem 21-3A (Algo) Flexible overhead budget; materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, P4
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Antuan Company set the following standard costs per unit for its product.
Direct materials (5.0 pounds @ $4.00 per pound) $ 20.00
Direct labor (1.8 hours @ $13.00 per hour)23.40
Overhead (1.8 hours @ $18.50 per hour)33.30
Standard cost per unit $ 76.70
The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factorys capacity of 20,000 units per month. Following are the companys 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 30,000
Total variable overhead costs 135,000
Fixed overhead costs
DepreciationBuilding 24,000
DepreciationMachinery 70,000
Taxes and insurance 17,000
Supervisory salaries 253,500
Total fixed overhead costs 364,500
Total overhead costs $ 499,500
The company incurred the following actual costs when it operated at 75% of capacity in October.
Direct materials (76,000 pounds @ $4.20 per pound) $ 319,200
Direct labor (21,000 hours @ $13.10 per hour)275,100
Overhead costs
Indirect materials $ 41,050
Indirect labor 176,800
Power 17,250
Maintenance 34,500
DepreciationBuilding 24,000
DepreciationMachinery 94,500
Taxes and insurance 15,300
Supervisory salaries 253,500656,900
Total costs $ 1,251,200
Problem 21-3A (Algo) Part 1
Required:
1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%,75%, and 85% capacity levels.

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