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 (4.0 lbs. $5.00 per Ib.) Direct labor (1.8 hrs. $10.00 per hr.) overhead (1.8 hrs. $18.50 per hr.) $20.00 18.00 33.30 $71.30 Total standard cost 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. Variable overhead costs Overhead Budget. (75) Capacity) Indirect materialo $ 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 70,000 Taxes and insurance 18,000 Supervision 251,500 Total fixed overhead costs $135,000 364,500 $499,500 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (60,500 lbs. $5.20 per lb.) $ 314,600 many TV TUULI LUSS WIR DUI Launy I LIVET. $ 314,600 197,600 Direct materiais (60,500 lbs. 35.20 per lb.) Direct labor (19,000 hrs. $10.40 per hr.) Overhead cost Indirect materials Indirect labor Pover Repair and maintenance Depreciation-building Depreciation-Machinery Taxes and insurance Supervision 5 41,200 176,550 17.250 34.500 25,000 94,500 16,200 251, 500 656,700 $1.168.900 Total costs Problem 08-3A Part 3 B. Compute the direct materials cost variance, including its price and quantity variances, (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Standard Cont Actual Cost Actual quantity $ 0 5 0