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. $4.00 per Ib. $16.00 Direct labor (1.6 hrs. $12.00 per hr.) Overhead (1.6 hrs. $18.50 per hr.) Total standard cost 19.20 29.60 $64.80 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 Overhead Budget (75% Capacity) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance Total variable overhead costs 15,000 75,000 15,000 30,000 $135,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead cost 24,000 70,000 16,000 199,000 309,000 $444,000 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,500 Ibs. $4.20 per lb.) $ 258,300 Direct labor (21,000 hrs. 12.20 per hr. Overhead costs 256,200 Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision 41,500 176, 850 17,250 34,500 24,000 94,500 14,400 199,000 602,000 $1,116,500 Total costs Problem 8-3A Part 3 3. Compute the direct materials cost variance, including its price and quantity variances. AQ Actual Quantity SQ Standard Quantit AP Actual Price SP Standard Price Actual Cost Standard Cost AQ AQ SP SQ SP Direct materials price variance Direct materials quantity variance Total direct materials variance S 0Unfavorable 0 Unfavorable Unfavorable Problem 8-3A Part 4 4. Compute the direct labor cost variance, including its rate and efficiency variances AH- Actual Hours SH Standard Hours AR Actual Rate SR Standard Rate Actual Cost Standard Cost AH AR AH SR SH SR Direct labor rate variance Direct labor efficiency variance Total direct labor variance 0 Unfavorable 0 Unfavorable Unfavorable 5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead KWIKEZE KWIKEZE KWIKEZE KWIKEZE COMPANY COMPANY COMPANY COMPANY ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume 75% of capacity Production , 75% of capacity level achieved Volume No variance Flexible Actual Variances Unfav Budget Results variance av Variable costs Indirect Indirect Power No variance Unfavorable avorable No variance materials labor Repairs and maintenance otal variable costs Fixed costs Unfavorable Depreciation No variance Unfavorable Favorable -Buildin Depreciation Machiner Taxes and insurance Supervision o variance