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 @ $4.00 per pound) Direct labor (1.7 hours $13.00 per hour) Overhead (1.7 hours $18.50 per hour) Standard cost per unit $ 16.00 22.10 31.45 $60.55 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 Total overhead costs $ 15,000 75,000 15,000 30,000 135,000 25,000 70,000 17,000 224,750 336,750 $ 471,750 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,500 pounds $4.10 per pound) Direct labor (19,000 hours @ $13.30 per hour) Overhead costs Indirect materials Indirect labor Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $252,150 252,700 $41,850 176,150 17,250 34,5 25,000 94,500 15,300 224,758 Required information 4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each variance by selecting favorable, unfavorable, or no varlance.) Answer is not complete. ANTUAN COMPANY Overhead Variance Report 0000 0000 00 90 For Month Ended October 31 Expected production 75% of capacity volume Production level achieved 75% of capacity Volume Variance No variance Flexible Budget Actual Results Variances Favorable/Unfavorable Variable overhead costs Indirect materials Indirect labor Power 15,000 S 41,850 $ 26,850 Unfavorable 75,000 176,150 101,150 Unfavorable 15,000 17,250 2.250 Unfavorable Maintenance 30,000 34,500 4,500 Unfavorable Total vanable overhead costs 135.000 209.750 Foxed overhead costs Depreciation-Building 0 25,000 25.000 0No variance Depreciation-Machinery 70,000 04.500 24,500 Taxes and insurance 17.000 15,300 1,700 Unfavorable Favorable Supervisory salaries 224,750 224,750 0 No variance Total fixed overhead costs 330,750 350.550 S 22,800 Unfavorable Total overhead costs S 471,750 Unfavorable Volume Variance Budgeted (flexible) overhead $592,300 Standard overhead applied Volume variance Total overhead variance $ 120,550 $ 471,750 No variance Unfavorable