Required information [The foiiowing information appiies to the questions dispiayeo' beiow] Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $4.00 per pound} $ 16.00 Direct labor (1.6 hours @ $14.00 per hour] 22.40 Overhead (1.5 hours @ $13.50 per hour) 29.60 Standard cost per unit 5- 53-90 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 76% capacity level. Overhead Budget (25% Capacity) Variable overhead costs Indirect materials 5 15,000 Indirect labor 35,000 Power 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs DepreciationBuilding 23,000 Depreciationi'lachiher}.r 1'0,000 Taxes and insurance 16,000 Supervisory salaries 239,390 Total fixed overhead costs 339,309 Total overhead costs 5 \"4:599 The company incurred the following actual costs when it operated at 15% of capacity.r in October. Direct materials (60,500 pounds @3 $4.20 per pound) 5 254,100 Direct labor (21,000 hours IE $14.10 per hour) 296,100 Overhead costs Indirect materials 5 41,300 Indirect labor 126,900 Power 1?,250 Maintenance 34, 500 DepreciationBuilding 23,000 DepreciationMachinery 94, 500 Taxes and insurance 14,400 Supervisory salaries 200,000 601,850 Total costs $ 1,152,050 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and xed cost at the 65%, 75%, and 85% capacity levels. Production [in units) Variable overhead costs Fixed overhead costs 63 c: $ swallows _--- 1 Compute the direct materials variance, including its price and quantity variances. {Indicate the effect of each variance by selecting favorable, unfavorable. or no variance.) 3. Compute the direct labor variance, including its rate and efciency variances. (Indicate the effect ofeach variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour\" answers to two decimal places.) 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 variance.) ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume Variance Favorable/Unfavorable Variable overhead costs Fixed overhead costs Total overhead costs Volume Variance Volume variance Total overhead variance