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 (3.0 pounds @ $4.00 $ per pound) 12.00 Direct labor (1.8 hours @ $11.00 per 19.80 hour) Overhead (1.8 hours @ $18.50 per 33.30 hour) Standard cost per unit $ 65.10 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 Indirect labor $ 15,000 90,000 Power 15,000 Maintenance 45,000 Total variable overhead 165,000 costs Fixed overhead costs Depreciation-Building Depreciation-Machinery 23,000 71,000 Taxes and insurance 16,000 Supervisory salaries 224,500 Total fixed overhead costs 334,500 Total overhead costs 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,500 pounds @ $4.10 per pound) Direct labor (21,000 hours @ $11.30 per hour) Overhead costs Indirect materials $ 190,650 237,300 $ 41,600 Power Indirect labor Maintenance 176,850 17,250 51,750 Depreciation-Building 23,000 Depreciation-Machinery 95,850 Taxes and insurance 14,400 Supervisory salaries 224,500 645,200 $ Total costs 1,073,150 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 at Capacity Variable Total For Month Ended October 31 Amount per Fixed Level of Unit Cost 65% 75% 85% Production (in units) Variable overhead costs $ 0.00 $ 0 $ 0 $ 0 Fixed overhead costs $ 0 $ 0 $ 0 $ 0 Total overhead costs 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.) Expected production volume Production level achieved Overhead Variance Report For Month Ended October 31 Volume Variance Flexible Actual Variances Favorable/Unfavorable Budget Results Variable overhead costs Fixed overhead costs Total overhead costs Volume Variance Volume variance Total overhead variance