Problem 8-3A (Algo) 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 (3.0 pounds $6.00 per pound) Direct labor (1.8 hours $11.00 per hour) Overhead (1.8 hours $18.50 per hour) Standard cost per unit $ 18.00 19.80 33.30 $ 71.10 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 (758 Capacity) Variable overhead costs Indirect materials Indirect labor $ 15,000 75,000 Power 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs 25,000 71,000 17,000 251,500 364,500 $ 499,500 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Dirent materials (45.500 pounds $6.10 ner noundi $ 277.550 Overhead Budget (758 Capacity) Variable overhead costs Indirect materials. Indirect labor Power $ 15,000 75,000 15,000 Maintenance 30,000 Total variable overhead costs. 135,000 Fixed overhead costs 25,000 71,000 17,000 251,500 364,500 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 pounds $6.10 per pound) Direct labor (21,000 hours $11.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance. Supervisory salaries Total costs $ 277,550 235,200 $ 41,050 176,650 17,250 34,500 25,000 95,850 15,300 251,500 657,100 $ 1,169,850 Problem 8-3A (Algo) Part 1 Problem 8-3A (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. Flexible Budget at Capacity Level of 75% 85% ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost 65% Production (in units) Variable overhead costs Fixed overhead costs Total overhead costs