Required Information Problem 21-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead varlance 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. ss.ee per Ib.) Direct labor (1.8 hrs. @ $13.00 per hr.) overhead (1.8 hrs. $18.50 per hr.) Total standard cost $15.ee 23.40 33.30 $71.70 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,eee Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,eee Total variable overhead costs $135, eee Fixed overhead costs Depreciation-Building 23,eee Depreciation Machinery 71,680 Taxes and insurance 17,000 Supervision 253,5ed Total fixed overhead costs 364,500 Total overhead costs $499, see The company incurred the following actual costs when it operated at 75% of capacity in October $ 239,209 279,300 Direct materials (46,898 Ibs. 5.2e per lb.) Direct labor (21,eee hrs. @ 513.30 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation Building Depreciation-achinery Taxes and insurance Supervision Total costs $ 41,450 176,3ee 17,250 34,500 23,00 95,85e 15,300 253, see 657.150 $1,175,650 Problem 21-3A Part 1&2 Required: 162. 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 0.00 0 Fixed overhead costs 0 Total overhead costs 30,000 $135,000 Repairs and maintenance Total variable overhead costs Fixed overhead costs Depreciation building Depreciation-Rachinery Taxes and Insurance Supervision Total fixed overhead costs Total overhead costs 23,000 71.000 17,000 164,500 $499,500 The company incurred the following actual costs when it operated at 75% of capacity in October 12,200 275,00 Direct naterais (46,000 tbs @ $5:20 per lb.) Direct labor (21,600 hrs. $13,30 per hr. overneed costs Indirect materials Indirect labor Power Hepairs and maintenance Depreciation-uilding Depreciation-achinery Taxes and insurance Supervision Total costs 541,450 17,100 17,250 4,500 23,000 95, se 15,300 3510 $1,175,650 Problem 21-3A Part 3 3. 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 verlance) Actual Cont Standard Cont Depreciation Machinery Taxes and insurance Supervision Total fixed overhead costs Total overhead costs 71,00 17,000 253, The company incurred the following actual costs when it operated at 75% of capacity in October $ 239,200 279,100 Direct materials (#6,000 tbs. 35.20 per 1b.) Direct labor (21,000 hrs. $11.30 per he.) overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation building Depreciation Machinery Taxes and Insurance Supervision Total costs $41,450 176,300 17.250 34,5 23,000 5,50 15,00 253,00 657.150 $1,175,00 Problem 21-3A Part 4 4. Compute the direct labor cost variance, including its rate and efficiency vanances, (Indicate the effect of each verlance by selecting for favorable, unfavorable, and No variance. Round "Rete per hour answers to two decimal places.) Actual Cost Problem 21-3A 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, unfavorable, 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 Fixed costs Total overhead costs