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 (3.2 Ibs. @ 55.ee per Ib.) Direct labor (2.0 hrs. @ 510.08 per hr.) Overhead (2.0 hrs. $18.50 per hr.) Total standard cost $15.00 20.00 37.00 $72.00 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 $ 15,000 Indirect labor SARA $ 15,000 99,000 15,000 , Vatice uverneau LUSL Indirect materials Indirect labor Power Repairs and maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead costs Total overhead costs $150,000 24,000 71, eee 17,000 293,000 405,000 $555,000 The company incurred the following actual costs when it operated at 75% of capacity in October $ 241,800 202,000 Direct materials (46,580 lbs. @ 55.20 per 1b.) Direct labor (20,000 hrs. @ $10.10 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision $ 41,600 176,550 17,250 34,500 24,000 95,850 15,300 293,000 698,050 Supervision Total costs 293,800 698,050 $1,141,850 Problem 08-3A Part 1&2 Required: 1&2. 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 Required information per Unit Cost capacity capacity capacity Sales (in units Variable overhead costs Fixed overhead costs Total overhead costs