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 (4.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $14.00 per hour) Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit $ 20.00 25.20 33.30 $ 78.50 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 (75% Capacity) Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs. $ 15,000 75,000 15,000 45,000 150,000 23,000 72,000 17,000 237,500 349,500 $ 499,500 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October Dinnct mataniale (61 000 neundr 217-300 < Prev 3 4 5 of 5 Next > Saved Help Save & Exit Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 pounds @ $5.20 per pound) Direct labor (21,000 hours @ $14.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $317,200 298,200 $ 41,700 176,150 17,250 51,750 23,000 97,200 15,300 237,500 659,850 $1,275,250 Problem 8-3A (Algo) Part 2 2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Actual quantity 61,000 x Actual price $ 0 Answer is not complete. Actual quantity X Standard price 61,000 x $ 14.20 066,200 $ 0 0 < Prev 3 4 5 of 5 Next > 0 Return to quen Standard Cost Standard quantity O A Standard price $ 5.20