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 @ $4.00 $ per pound) 16.00 Direct labor (1.7 hours @ $14.00 per hour) 23.80 Overhead (1.7 hours @ $18.50 per 31.45 $ 71.25 hour) Standard cost per unit 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 135,000 costs Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 72,000 Taxes and insurance 18,000 Supervisory salaries 222,750 Total fixed overhead costs 336,750 $ Total overhead costs 471,750 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,500 pounds @ $4.20 per pound) Direct labor (21,000 hours @ $14.40 per hour) Overhead costs Indirect materials $ 258,300 302,400 41,600 Power Indirect labor Maintenance 176,150 17,250 34,500 Depreciation-Building 24,000 Depreciation-Machinery 97,200 Taxes and insurance 16,200 Supervisory salaries 222,750 629,650 Total costs 1,190,350 Required: 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 Variable Total Flexible Budget at Capacity For Month Ended Level of Amount per Fixed October 31 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 Actual quantity Actual price Actual quantity Standard price X 0 $ 0 $ 0 0 $ 0 Standard Cost Standard quantity X Standard price X 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 $ 0 $ 0 $ 0 0 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 Budget Results Variances Favorable/Unfavorable Variable overhead costs Fixed overhead costs Total overhead costs Volume Variance Volume variance Total overhead variance $ 0