Required information Problem 8-3A (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 (4.6 pounds @ $5.00 per pound) $ 20.00 Direct labor (1.9 hours @ $11.00 per hour) 20.90 Overhead (1.9 hours $18.50 per hour) 35.15 Standard cost per unit $ 76.05 The standard overhead rote ($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 (759 Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 90,000 Power 15,000 Maintenance 30,000 Total variable overhead costs 150,000 Fixed overhead costs Depreciation-Building 23,000 Depreciation Machinery 71,000 Taxes and insurance 17.000 Supervisory salaries 266,250 Total fixed overhead costs 377,250 Total overhead costs $ 527,250 The company incurred the following actual costs when it operated at 75% of capacity in October $ 314,600 237,300 Direct materials (60,500 pounds @ $5.20 per pound) Direct labor (21,000 hours @ $11.30 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervisory salaries Total costs $ 41,800 176,200 17,250 34,500 23,000 95,850 15,300 266,250 s 670,150 $ 1,222,050 Expected production volume Production level achieved Volume Variance For Month Ended October 31 75% of capacity 75% of capacity Flexible Budget Actual Results Variances Favorable/Unfavorable $ Variable overhead costs Indirect materials Indirect labor Power Maintenance 15,000 $ 90,000 15,000 30,000 41,800 $ 176,200 17,250 34,500 26,800 Unfavorable 86,200 Unfavorable 2.250 Unfavorable 4,500/Unfavorable 70,000 269.750 119,750 Unfavorable Total variable overhead costs Fixed overhead costs Depreciation Building Depreciation Machinery Taxes and insurance Supervisory salaries cos 23,000 71,000 17,000 266,250 23,000 95,850 15,300 266,250 O No variance 24,850 Unfavorable 1,700 Favorable O No variance 377.250 Total fixed overhead costs Total overhead costs 23,150 Unfavorable 400,400 $ 670,150 $ $ 527,250 $ 142,900 (Unfavorable Volume Variance Budgeted (flexible) overhead Standard overhead applied Volume variance Total overhead variance $ 0