Problem 21-3A 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 materiale (4.0 Ibs. @ $6.00 per Ib.) Direct labor (1.6 hrs. $12.00 per hr.) Overhead (1.6 hrs. @ $18.50 per hr.) Total standard cost $24.00 19.20 29.60 $72.80 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. $135,000 Overhead Budget (758 Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costo Fixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 71,000 Taxes and insurance 17,000 Supervision 197,000 Total fixed overhead costs Total overhead costs 309,000 $444,000 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 372,100 270,600 Direct materials (61,000 lbs. # $6.10 per lb.) Direct labor (22,000 hrs. $12.30 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 41,400 176,200 17.250 34,500 24,000 95,850 15,300 197,000 601,500 $1,244,200 Problem 21-3A 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 Varianco Report For Month Ended October 31 Expected production volume Production level achieved Volume variance Flexible Budget Actual Results Variances Fav! Unfav. Variable costs