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 55. per pound) Direct labor (1.8 hours @ $13.00 per hour) Overhead (1.8 hours $18.50 per hour) Standard cost per unit $20.00 23.40 33.30 $26.20 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 25,000 71,000 17,000 236,500 349,500 $ 499,500 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,000 pounds @ $5.10 per pound) Direct labor (23,000 hours $13.10 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs Problem 8-3A (Algo) Part 2 $311,100 301,300 $ 41,750 176,600 17,250 51,750 25,000 95,850 15,300 236-500 660,000 Maintenance 45,000 Total variable overhead costs 150,000 Fixed overhead costs Depreciation-Building 25,000 Depreciation-Machinery 71,000 Taves and insurance Supervisory salaries Total fixed overhead costs Total overhead costs 17,000 236,500 349,500 $499,500 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,000 pounds @ $5.30 per pound) Direct labor (23,000 hours $13.10 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $41,750 176,500 17,250 51,750 25,000 95,850 $111,100 301,300 15,300 236,500 660,000 $1,272,400 Problem 8-3A (Algo) Part 2 2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each varlance by selecting favorable, unfavorable, or no variance.) Answer is not complete. Actual Cost Standard Cost Actual quantity O 3 Adual price Actual quarsity Standard price 23.000 301.300 13.10 23.000 13.00 O Standard quantity 27.000 Standard price X 13.00 299,000 351,000 $2.3001 2.300 Unfavorable 3 52.000 40,700 Favorable Favorable 600 $2.000