Problem $23-3$A $($Algo$)$ Flexible overhead budget; materials, labor, and overhead variances; and overhead variance report LO P$1,$ P$2,$ P$3,$ P$4$

$[$The following information applies to the questions displayed below.$]$

Antuan Company set the following standard costs per unit for its product.

Direct materials $(4\mathrm{.}0$ pounds @ $$5\mathrm{.}00$ per pound$)$ $ $20\mathrm{.}00$

Direct labor $(1\mathrm{.}7$ hours @ $$10\mathrm{.}00$ per hour$)17\mathrm{.}00$

Overhead $(1\mathrm{.}7$ hours @ $$18\mathrm{.}50$ per hour$)31\mathrm{.}45$

Standard cost per unit $ $68\mathrm{.}45$

The standard overhead rate $($$$18\mathrm{.}50$ per direct labor hour$)$ is based on a predicted activity level of $75\%$ of the factory$$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 $15,000$

Maintenance $30,000$

Total variable overhead costs $135,000$

Fixed overhead costs

Depreciation$$Building $23,000$

Depreciation$$Machinery $70,000$

Taxes and insurance $18,000$

Supervisory salaries $225,750$

Total fixed overhead costs $336,750$

Total overhead costs $ $471,750$

The company incurred the following actual costs when it operated at $75\%$ of capacity in October.

Direct materials $(61,000$ pounds @ $$5\mathrm{.}10$ per pound$)$ $ $311,100$

Direct labor $(20,000$ hours @ $$10\mathrm{.}30$ per hour$)206,000$

Overhead costs

Indirect materials $ $41,300$

Indirect labor $176,450$

Power $17,250$

Maintenance $34,500$

Depreciation$$Building $23,000$

Depreciation$$Machinery $94,500$

Taxes and insurance $16,200$

Supervisory salaries $225,750628,950$

Total costs $ $1,146,050$