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 (4.8 pounds @ $5.00 per pound) Direct labor (1.6 hours @ $12.00 per hour) Overhead (1.5 hours $18.50 per hour) Standard cost per unit $ 20.00 19.28 20.68 $68,80 The standard overhead rate ($19.50 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 custs Indirect saterials $ 15,000 Indirect labor 75,888 Power 15,000 Maintenance Total variable overhead costs 135,000 overhead costs Depreciation-Building 25,000 Depreciation Machinery 71,000 Taxes and insurance 17,800 Supervisory salaries 196,000 Total fixed overhead costs 309,000 Total overhead costs $444,800 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,000 pounds @ $5.28 per pound) Direct labor (21,088 hours @ $12.20 per hour) Overhead costs Indirect saterials Indirect labor Power Maintenance Depreciation-Building Depreciation Machinery Taxes and Insurance Supervisory salaries Total costs $ 317,200 256,200 $41,900 176,500 17,258 34,500 25,000 95,858 15,300 196,000 582,300 $1,175,700 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75% and 85% capacity levels. Answer is not complete. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 21 Variable Amount per Flexible Budget at Capacity Level of Total Fixed Cost Unit 86% 76% 85% Production (in units) Variable overhead costs Indirect materials Indirect labor 12,000 15,000 17,000 Power Maintenance 0000 1.00 O 5.00 $ 13.000 $ 15,000 $17,000 65,000 75,000 85,000 1.00 13,000 15,000 17,000 2:00 26,000 30,000 34.000 $ 9.00 $117,000 130,000 153.000 Fiend overhead costs Depreciation Building O Depreciation Machinery Taxes and insurance Supervisory salaries 0000 $ 23,000 $ 23,000 23,000 70,000 70,000 70,000 70,000 17.000 199.000 17,000 196,000 17,000 17,000 199,000 199,000 x $285,000 $309,000 $300,000 $ 300,000 Total overhead costs $426,000 $444,000 462.000 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 @ $5.00 per pound) Direct labor (1.5 hours @ $12.00 per hour) Overhead (1.5 hours $18.50 per hour) Standard cost per unit $ 20.00 19.28 29.68 $ 68,88 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 (755 Capacity) Variable ovirtad cust Indirect materials $15,000 Indirect labor 75,000 Power 15,000 Maintenance 39,000 Tutal variable overhead costs 135,000 Fixed overhead costs Deprecation Bulling Depreciation Machinery 25,000 71,000 Taxes and Insurance 17,000 Supervisory salaries 196,000 Total fixed overhead custs 300,000 Total overhead costs $444,000 The company Incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,800 pounds @ $5.20 per pound) Direct labor (21,000 hours @ $12.20 per hour) Overhead costs Indirect materials Indirect labor Powr Maintenance Depreciation Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $317,200 256,200 $41,000 175,500 17,258 34,580 25,000 95,858 15,300 195,000 602,300 $1,175,700 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.) Answer is complete but not entirely correct. Actual Cost Actual quantity x Actual price Actual quantity Standard price 61,500 O X 5.20 61,500 5.00- 319.800 307,500 $7,500 Direct materials quantity variance Direct labor efficiency variance Total variable overhead cost variance 12,300 12,300 Unfavorable 7.500 Unfavorable 19,800 Unfavorable Standard Cost Standard quantity x 50,000 x Standard price 5.00 $300.000