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 (3.2 pounds @ $4.00 per pound) Direct labor (1.7 hours @ $13.ee per hour) Overhead (1.7 hours @ $18.50 per hour) ( Standard cost per unit $ 12.00 22.10 31.45 $ 65.55 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. $ 15,00 75,00 15, eee 30,000 135, eee 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 25, eee 71, eee 17.ee 223,750 336,750 $ 471,750 The company incurred the following actual costs when it operated at 75% of capacity in October $ 188,600 264, eee Direct materials (46,080 pounds @ $4.10 per pound) Direct labor (20,000 hours @ $13.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervisory salaries Total costs $ 41,100 176,250 17,250 34,500 25,eee 95,850 15,300 223,750 629,000 $ 1,881,600 Problem 8-3A (Algo) Part 1 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. ANTUAN COMPANY Flexible Overhead Budgets Flexible Budget at Capacity Level of For Month Ended October 31 Variable Amount Total Fixed per Unit Cost 65% 75% % 85% Production (in units) Variable overhead costs $ 0.00 $ $ 0 os 0 $ $ 0 Fixed overhead costs s 0 0 $ os 0 $ $ 0 Total overhead costs 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 varlance.) Actual Cost Standard Cost 0 S 0 s 0 S 0 0 3. Compute the direct labor variance, including its rate and efficiency variances. (Indicate the effect of each varlance by selecting favorable, unfavorable, or no varlance. Round "Rate per hour" answers to two decimal places.) Actual Cost Standard Cost S 0 $ 0 $ 4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each verlance by selecting favorable, unfavorable, or no variance.) ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume Variance Flexible Budget Actual Results Variances Favorable/Unfavorable Variable overhead costs Fixed overhead costs Total overhead costs Volume Variance s 0 Volume variance Total overhead variance