Required information Part 1 of 4 Problem 8-3A (Algo) Flexible overhead budget; materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, P4 3.75 [The following information applies to the questions displayed below.] points Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $4.00 per $ 16.00 pound) Direct labor (2.0 hours @ $11.00 per hour) 22.00 Overhead (2.0 hours @ $18.50 per hour) 37.00 Standard cost per unit $ 75.00 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 (75% Capacity) Variable overhead costs Indirect materials $ 15,090 Indirect labor 75 ,090 Power 15, 000 Maintenance 30,000 Total variable overhead costs 135, 000 Fixed overhead costs Depreciation-Building 24, 000 Depreciation-Machinery 71, 000 Taxes and insurance 18, 000 Supervisory salaries 307, 000 Total fixed overhead costs 420,000 Total overhead costs $ 555,000Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15JBBB Indirect labor 751999 Power 15'999 Maintenance 39'999 Total variable overhead costs 135JBBB Fixed overhead costs DepreciationBuilding 24J999 DepreciationMachinery 71'999 Taxes and insurance 18'999 Supervisory salaries 397:999 Total Fixed overhead costs 4291999 Total overhead costs $ 5551933 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,999 pounds @ $4.29 per pound) 1i. 256,293 Direct labor (23,999 hours @ $11.19 per hour} 255:399 Overhead costs Indirect materials $ 411899 Indirect labor 1?EJESB Power 171259 Maintenance 341599 DepreciationBuilding 24J999 DepreciationMachinery 95J859 Taxes and insurance 16J299 Supervisory salaries 39TJBBB ?13J259 $- Total costs 1,224J?SB 1. Prepare flexible overhead budgets for October showing amounts of each variable and xed cost at the 65%, 75%, and 85% capacity levels. 3 Answer is not complete. Production [in units} 20,000 9 Variable overhead costs $ ?5,000 a ma Indirect labor Indirect materials 15,000 9 30,000 a Power Maintenance Total variable overhead 3% . $ 135,000 Fixed overhead costs DepreciationBuilding a 0 24,000 9 DepreciationMachhery a r1000 9 Taxes and insurance 13,000 a Supervisory salaries 30?,000 9 30?,000 9 301000 0 Totalxed overhead $30?,000 $ 420,000 $ 30?,000 Total overhead costs Problem 8-3A (Algo) Part 2 2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Standard Cost Actual quantity X Actual price Actual quantity X Standard price Standard quantity X Standard price X 0 X X 0 $ 0 O O Direct materials variance3. Compute the direct labor variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to two decimal places.) Actual Cost Standard Cost Actual hours X Actual rate Actual hours X Standard rate Standard hours X Standard rate X X X4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. {Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) == Volume variance Total overhead variance