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 (5.0 Ibs. @ $5.00 per Ib.) Direct labor (1.9 hrs. @ $14.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) Total standard cost $ 25.00 26.60 35.15 $ 86.75 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 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 25,000 Depreciation-Machinery 71,000 Taxes and insurance 17,000 Supervision 279.250 $135,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead costs Total overhead costs 25,000 71,000 17,000 279, 250 392,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 395,200 282,000 Direct materials (76,000 Ibs. @ $5.20 per lb.) Direct labor (20,000 hrs. @ $14.10 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance DepreciationBuilding DepreciationMachinery Taxes and insurance Supervision Total costs $ 41,150 176,600 17,250 34,500 25,000 95,850 15,300 279, 250 684,900 $1,362,100 Problem 08-3A Part 1&2 Required information ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Variable Amount Total Fixed 65% of Cost capacity Flexible Budget for 75% of 85% of capacity capacity per Unit Sales (in units) Variable overhead costs Fixed overhead costs Total overhead costs