Problem 8-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, C2 Antuan Company set the following standard costs for one unit of its product.

Direct materials (3.0 Ibs. @ $5.00 per Ib.)	$	15.00
Direct labor (2.0 hrs. @ $12.00 per hr.)		24.00
Overhead (2.0 hrs. @ $18.50 per hr.)		37.00
Total standard cost	$	76.00

The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factorys capacity of 20,000 units per month. Following are the companys budgeted overhead costs per month at the 75% capacity level.

Overhead Budget (75% Capacity)
Variable overhead costs
Indirect materials	$	15,000
Indirect labor		75,000
Power		15,000
Repairs and maintenance		30,000
Total variable overhead costs				$	135,000
Fixed overhead costs
DepreciationBuilding		24,000
DepreciationMachinery		71,000
Taxes and insurance		17,000
Supervision		308,000
Total fixed overhead costs					420,000
Total overhead costs				$	555,000

The company incurred the following actual costs when it operated at 75% of capacity in October.

Direct materials (46,500 Ibs. @ $5.20 per lb.)				$	241,800
Direct labor (22,000 hrs. @ $12.20 per hr.)					268,400
Overhead costs
Indirect materials	$	41,550
Indirect labor		176,300
Power		17,250
Repairs and maintenance		34,500
DepreciationBuilding		24,000
DepreciationMachinery		95,850
Taxes and insurance		15,300
Supervision		308,000			712,750
Total costs				$	1,222,950

Problem 8-3A Part 5

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 Expected production volume 75% of capacity 75% of capacity Production level achieved Volume variance No variance Flexible Budget Actual Results Variances Fav./ Unfav. Variable costs Power nfavorablee Indirect labor Unfavorable Indirect materials nfavorable Repairs and maintenancee Unfavorable Total variable costs nfavorable Fixed costs Depreciation--Building o variance Depreciation-Machinery nfavorable Supervision o variance Taxes and insurance avorable Total fixed costs Total overhead costs