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 (4.8 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 $69.55 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 (25% 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 30,008 135,000 25,000 70,000 17,000 224,750 336,750 $ 471,750 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,500 pounds @ $4.18 per pound) Direct labor (19,000 hours $13.30 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Hachinery Taxes and insurance Supervisory salaries Total costs Problem 8-3A (Algo) Part 4 4. Prepare a detailed overhead variance report that shows the varian $252,150 252, 788 $41,850 176,150 17,250 34,500 25,000 94,500 15,300 224,750 for individual items of c erhead. (Indicate the effect of each Prepare a detailed overhead variance report that shows the variances for individual items arlance by selecting favorable, unfavorable, or no variance.) Answer is complete but not entirely correct. ANTUAN COMPANY Overhead Variance Report 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 $ 15,000 S 41.850 S 26,850 Unfavorable Indirect labor 75,000 176,150 101,150 Unfavorable Power 15,000 17,250 2,250 Unfavorable Maintenance 30,000 34,500 4,500 Unfavorable Total variable overhead costs 135,000 269,750 134,750 Unfavorable Fixed overhead costs Depreciation-Building 25,000 25,000 0 No variance Depreciation-Machinery 70,000 94,500 24,500 Taxes and insurance 17,000 15,300 1,700 Unfavorable Favorable Supervisory salaries 224,750 224,750 0 No variance Total foxed overhead costs 336,750 359,550 S 22,800 Unfavorable Total overhead costs $ 471,750 S 629,300 $ 157,550 Unfavorable Volume Variance Budgeted (flexible) overhead Standard overhead applied Volume variance Total overhead variance $ 370,000 S 370,000 $ No variance $ 157,550 Unfavorable