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 (5.0 pounds @ $5.00 per pound) Direct labor (1.6 hours @ $11.00 per hour) Overhead (1.6 hours $18.50 per hour) Standard cost per unit $ 25.00 17.60 29.60 $ 72.20 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 71,000 17,000 197,000 309,000 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs $ 444,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (76,500 pounds $5.20 per pound) Direct labor (21,000 hours @ $11.30 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,150 176,800 17,250 34,500 24,000 95,850 15,300 197,000 $ 397,800 237,300 601,850 $ 1,236,950 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65 85% capacity levels. Flexible Budget at Capacity Level of ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost 65% Production (in units) Variable overhead costs 75% 85% $ 0.00 $ 0 0 0 Fixed overhead costs $ 0 $ 0 $ 0 Total overhead costs 4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. variance by selecting favorable, unfavorable, or no variance.) Expected production volume Production level achieved Volume Variance ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Variable overhead costs Fixed overhead costs Total overhead costs Volume Variance Flexible Budget Actual Results Variances Favorable/Unfavorable Volume variance $ 0 Total overhead variance 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