Required Information Problem 08-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (4.2 Ibs. @ $6.60 per Ib.) Direct labor (2.0 hrs. @ $13.00 per hr.) Overhead (2.0 hrs. @ $18.50 per hr.) Total standard cost $24.ee 26.00 37.80 $87.80 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 $ 15,00 Indirect labor 75,000 Power 15,80 Repairs and maintenance 30, eee Total variable overhead costs Fixed overhead costs Depreciation-Building 24, eee Depreciation-Machinery 71, eee Taxes and insurance 18, eee Supervision 307,000 Total fixed overhead costs Total overhead costs $135, eee 420,eee $555, eee The company Incurred the following actual costs when it operated at 75% of capacity in October $ 372,180 277,280 Direct materials (61,eee Ibs. @ $6.10 per lb.) Direct labor (21,000 hrs. @ $13.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 41,750 176,750 17,250 34,500 24,280 95,850 16,200 307, e80 713,380 $1,362,680 4. Compute the direct labor cost varlance, including its rate and efficiency variances. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and No varlance. Round "Rate per hour" answers to two decimal places.) Actual Cost Standard Cost Actual hours Actual rate Standard hours Standard rate Actual hours Standard rate $ 0 $ 0 S Direct labor rate variance Direct labor efficiency variance Total direct labor variance Unfavorable Favorable Favorable 5. Prepare a detailed overhead varlance report that shows the variances for Individual Items of overhead. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and No varlance.) Expected production volume Production level achieved ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 75% of capacity 75% of capacity No variance Flexible Budget Actual Results Volume variance Variances Fav. / Unfav. Variable costs Indirect materials Indirect labor Unfavorable Unfavorable Unfavorable Unfavorable Power Repairs and maintenance Total variable costs Unfavorable Fixed costs No variance Depreciation-Building Depreciation-Machinery Unfavorable Favorable Taxes and insurance Supervision No variance Total fixed costs Unfavorable Total overhead costs Unfavorable