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 (3.0 lbs. @ $5.00 per Ib.) Direct labor (2.0 hrs. @ $10.00 per hr.) overhead (2.0 hrs. @ $18.50 per hr.) Total standard cost $15.00 20.00 37.00 $72.80 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 $ 15,000 Indirect labor 99,800 PAU 99,000 15,000 30,000 $150,000 LA ELL MOLCHOAD 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 24,000 71,000 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 (46,500 lbs. @ $5.20 per lb.) 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 Total costs $ 41,600 176,550 17,250 34,500 24,000 95,850 15, 300 293, 000 698,650 $1,141,850 Taxes and insurance Supervision Total costs 15,300 293,000 698,050 $1,141,850 Problem 08-3A Part 5 5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each variance by selecting for favorable, unfovorable, and No variance.) ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume variance Flexible Budget Actual Results Variances Fav./Unfav. Variable costs ! Required information Volume variance Flexible Budget Actual Results Variances Fav. / Unfay. Variable costs Fixed costs Total overhead costs