Problem 8-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, C2 [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. a $4.00 per lb) 16.00 Direct labor (1.7 hrs. $12.00 per hr.) Overhead (1.7 hrs. $18.50 per hr.) 2040 31.45 Total standard cost $ 6785 The predetermined overhead rate ($18 50 per direct labor hour) is based on an expected volume of the factory's capacity of 20.000 units per month. Following are the company's budgeted overhead costs p month at the 75% capacity level Overhead Budget (75% Capacity) Variable overhead costs $ 15,000 75,000 Indirect materials Indirect labor Power Repalrs and maintenance 20,000 Total variable overhead costs Fixed overhead costs Depreciation-building Depreciation-machinery 24.000 8,000 223750 Taxes and insutannce 336,750 Overhead Budget (75% Capacity) Variable overhead costs 15,000 75.000 15,000 Indirect materials Power Repairs and maintenance Total variable overhead costs s 135,000 Fixed overhead costs Depreciation-building Depreciation-machinery Taxes and insurancee Supervision 24.000 71,000 18,000 223750 Total fixed overhead costs 336.750 Total overhead costs s 471750 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (60,500 lbs. @ $4.20 per lb.) Direct labor (29.000 hrs. $12.20 per hr) $ 254100 353.800 costs $ 41050 176,900 17250 34,500 Indirect materials Repairs and maintenance Depreciati Depreciation-machinery Taxes and insurance Supervision 16,200 223750 629,500 $ 1.237400 Required 1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at F Not Secure I eztomnducation.com/hm.tpx?--0./6/8298 /330796241551224054090 the 65%,75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Flexible Budget for 75% of Variable Amount per Unit Total Fixed Cost 65% of capac 85% of capacity Sales (in units) Variable overhead costs 0.00 3 Requir 2.50 points Problem 8-3A Part 3 3. Compute the direct materials cost variance, including its price and quantity variances Actual Cost Standard Cost References eBook & Resources Problem 8-3A Part 4 4. Compute the direct labor cost variance, including its rate and efficiency variances Actual Cost Standard Cost 0 References eBook & Resources Expanded table Learning Objective: 08-0a 5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 volume Production level achieved Flexible Budget Actual Results Variances Fav./ Unfav. Fixed costs