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 (5.0 pounds @ $6.ee per pound) Direct labor (1.7 hours $11.00 per hour) Overhead (1.7 hours @ $18.50 per hour) Standard cost per unit 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% capaci level $ 30.00 18.20 31.45 $ 0.15 $ 25 15. 30,00 135.000 overhead Budget (%5 Capacity Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead CORES Fixed overhead costs Depreciation-Building Depreciation Machinery Yaxes and insurance Supervisory salaries Total fixed overhead costs Total overhead CORE 2.0 72. 10 22 360 SA The company incurred the following actual costs when it operated at 75% of capacity in October Prey CD 12 3 4 of 4 35 Next > Total overhead costs $ 471,750 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (76,880 pounds @ $6.20 per pound) $ 471,2ee Direct labor (21,000 hours @ $11.30 per hour) 237, 300 Overhead costs Indirect materials $ 41,750 Indirect labor 176,700 Power 17,250 Maintenance 34,500 Depreciation-Building 23,800 Depreciation-Machinery 97,200 Taxes and insurance 15, 300 Supervisory salaries 224,750 630, 450 Total costs $ 1,338,950 roblem 8-3A (Algo) Part 1 equired: Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65 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 af Capacity Level of Fot Month Ended October at Variable Amount Total Fixed per Unit Cost 65% 75% 05% Production (in units) Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead $ 0.00 0 $ 05 0 Fixed overhead costs S 0 $ 0 $ 0 0 $ Total overhead costs Supervisory Salaries Total costs 224,750 630.A5 51,338,950 Problem 8-3A (Algo) Part 2 2. Compute the direct materiais variance, including its price and quantity variances, (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Standard Actual Cost Actualquantity 238.000 Actual Actual quantity 230 300 Standard 5 3 Santa Standards 244100 1 3.672.000 15 15.00 12.10 5 X X 5 2.002.000 Besp.400 500.000 1002.520 1 Directorate variance Decoracione variante Totale overhead coace 892320 00.000 TO2520 Favori For Depreciation Machinery Taxes and insurance Supervisory salaries Total costs 23,000 97,200 15,100 234,750 630.450 11,118350 Problem 8-3A (Algo) Part 3 3. Compute the direct labor variance, including its rate and efficiency variances (Indicate the effect of each verlence by selecting "avorable, unfavorable, or no variance. Round "Rete per hour answers to two decimal places) Actual Cost dades 1 0 5 Total vanable overhead costante Variable overhead officiency variance Variable overhead spend vanance Favole Required information 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 Volume variance 3 Total overhead variance 5