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 (6 lbs. @ $5 per Ib.) Direct labor (2 hrs. $17 per hr.) Overhead (2 hrs. $18.58 per hr.) Total standard cost 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 capacity level Capacity Overhead Budget variable overhead costs indirect materials indirect laber 5, de Repairs and maintenance Total variable overhead xed overhead cost Depreciation-unding Depreciation-achine taxes and insurance se de 12 3555, une company incurred the following actu costs when it operated at 75% of capacity in October DEL LORER Orection Overhead Taxes and insurance Supervision Total fixed overhead costs Total overhead costs 12,888 79, eee 195,00 $555,eee The company incurred the following actual costs when it operated at 75% of capacity in October. 5464, 1ee 526, 125 Direct materials (91,eee Ibs. $5.10 per lb.) Direct labor (3e, see hrs. @ $17.25 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance supervision Total costs $ 44,250 172 25e 43, eee 95,00 24,00 75, eee 11,5ee 56,5ea $1,550, 725 Problem 8-3A Part 4 4. Compute the direct labor cost variance, including its rate and efficiency variances AH = Actua Hours SH = Standard Hours AR = Actual Rate SR - Standard Rate SUPERVISI Total costs 89, eee 560, 500 $1,550,725 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 SR 3. Prepare a vede overedo Variance report that shows the variances for individual items of overhead ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume variance Flexible Budget Actual Results Variances Fav. Unfav. Variable costs Foced costs Total overhead costs