Problem 21-3A (Static) Flexible overhead budget; 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 per unit for its product. Direct materials (6 pounds $5 per pound) Direct labor (2 hours $17 per hour) Overhead (2 hours $18.50 per hour) Standard cost per unit $ 30 34 37 $101 The standard overhead rate ($18.50 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 Indirect labor Explanation Show correct answers $45,000 180,000 Power 45,000 Maintenance 90,000 Total variable overhead costs 360,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery Taxes and insurance Supervisory salaries 80,000 12,000 79,000 Total fixed overhead costs Total overhead costs 195,000 $555,000 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (91,000 pounds $5.10 per pound) Direct labor (30,500 hours $17.25 per hour) Overhead costs of 8 $464,100 526,125 Next>