! Required information [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 @ $6.00 per pound) Direct labor (1.8 hours @ $14.00 per hour). $ 24.00 25.20 33.30 Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit $ 82.50 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. $ 15,000 Indirect labor. 75,000 Power 15,000 Maintenance 30,000 Total variable overhead costs. 135,000 Fixed overhead costs 24,000 70,000 Depreciation Building Depreciation-Machinery Taxes and insurance Supervisory salaries. 16,000 254,500 Total fixed overhead costs. 364,500 Total overhead costs $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,500 pounds @ $6.20 per pound) Direct labor (22,000 hours @ $14.30 per hour) Overhead costs $ 381,300 314,600 Indirect materials $ 41,800 Indirect labor 176,700 Power 17,250 Maintenance 34,500 24,000 94,500 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries 14,400 254,500 657,650 Total costs $ 1,353,550 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. For Month Ended October 31 Production (in units) Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead Fixed overhead costs Total overhead costs ANTUAN COMPANY Flexible Overhead Budgets Variable Amount Total Fixed per Unit Cost 1.00 5.00 1.00 2.00 9.00 $ $ Flexible Budget at Capacity Level of 65% 75% 85% $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Standard Cost 3. Compute the direct labor variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to two decimal places.) Actual Cost Standard Cost 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 Flexible Budget Actual Results Variances Favorable/Unfavorable Variable overhead costs Fixed overhead costs Total overhead costs Volume Variance Volume variance Total overhead variance