Required information Problem 21-3A (Algo) Flexible overhead budget; 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 per unit for its product. Direct materials (4.0 pounds $6.00 per pound) Direct labor (1.9 hours $12.00 per hour) Overhead (1.9 hours $18.50 per hour) Standard cost per unit $ 24.00 22.80 35.15 $ 81.95 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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 (758 Capacity) Variable overhead costs Indirect materials Indirect labor Fixed overhead costs $ 15,000 75,000 Power 15,000 Maintenance 30,000 Total variable overhead costs. 135,000 25,000 71,000 16,000 280,250 392,250 $527,250 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 pounds $6.20 per pound) Direct labor (21,000 hours $12.40 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,350 176,300 17,250 34,500 25,000 95,850 14,400 280,250 $ 378,200 260,400 684,900 $ 1,323,500 Problem 21-3A (Algo) Part 1 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Variable Amount per Unit Flexible Budget at Capacity Level of Total Fixed Cost 65% 75% 85% Production (in units) 20,000 Variable overhead costs Indirect materials Indirect labor Power Maintenance $ 15,000 75,000 15,000 30,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries $ 135,000 Total overhead costs