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Antuan Company set the following standard costs per unit for its product.

Direct materials (4.0 pounds @ $6.00 per pound)	$ 24.00
Direct labor (1.8 hours @ $12.00 per hour)	21.60
Overhead (1.8 hours @ $18.50 per hour)	33.30
Standard cost per unit	$ 78.90

The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factorys capacity of 20,000 units per month. Following are the companys 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
DepreciationBuilding	25,000
DepreciationMachinery	72,000
Taxes and insurance	18,000
Supervisory salaries	249,500
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 (60,500 pounds @ $6.10 per pound)		$ 369,050
Direct labor (22,000 hours @ $12.10 per hour)		266,200
Overhead costs
Indirect materials	$ 41,500
Indirect labor	176,100
Power	17,250
Maintenance	34,500
DepreciationBuilding	25,000
DepreciationMachinery	97,200
Taxes and insurance	16,200
Supervisory salaries	249,500	657,250
Total costs		$ 1,292,500

4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead.

Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.