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 Required: 182. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Flexible Budget for Variable Amount Total Fixed 65% of 75% of 85% of Cost capacity capacity capacity per Unit Sales (in units) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance Total variable costs s 0.00 Fixed overhead costs Depreciation Building Depreciation-Machinery Taxes and insurance Supervision Total fixed costs 0 0 0 Total overhead costs 3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and No varlance.) Actual Cost Standard Cost Actual quantity Actual price Standard quantity Standard price Actual quantity Standard price 0 $ s 01 $ Unfavorable Direct materials price variance Direct materials quantity variance Total direct materials variance Unfavorable Unfavorable