Required information [The following information applies to the questions displayed below.) Antuan Company set the following standard costs per unit for its product. $ 20.00 Direct materials (4.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $12.00 per hour) Overhead (1.8 hours @ $18.50 per hour) 21.60 33.30 Standard cost per unit 74.90 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 45,000 Total variable overhead 150,000 costs Fixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 70,000 Taxes and insurance 16,000 Supervisory salaries 239,500 Total fixed overhead costs 349,500 $ Total overhead costs 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 313,650 244,000 Direct materials (61,500 pounds @ $5.10 per pound) Direct labor (20,000 hours @ $12.20 per hour) Overhead costs $ Indirect materials 41,200 Indirect labor 176,900 Power 17,250 Maintenance 51,750 Depreciation-Building 24,000 Depreciation Machinery 94,500 Taxes and insurance 14,400 Supervisory salaries 239,500 659,500 $ 1,217,150 Total costs 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 Flexible Budget at Capacity Level of Amount per Total Fixed Unit Cost 65% 75% 85% For Month Ended October 31 Production (in units) 13,000 15,000 Variable overhead costs Indirect materials $ 1.00 $ Indirect labor 5.00 13,000 $ 65,000 13,000 26,000 15,000 75,000 15,000 30,000 Power 1.00 Maintenance 2.00 Total variable overhead $ 9.00 $ 117,000 $ 135,000 $ 0 $ $ 24,000 $ Fixed overhead costs Depreciation Building DepreciationMachinery Taxes and insurance Supervisory salaries 24,000 $ 24,000 72,000 72,000 17,000 17,000 251,500 251,500 72,000 17,000 251,500 24,000 72,000 17,000 251,500 Total fixed overhead $ 364,500 $ 364,500 $ 364,500 $364,500 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 0 $ 0 $ 0 $ 0 0 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 $ 0 $ 0 $ 0 0 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.) ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume Variance Flexible Budget Actual Results Variances Favorable/Unfavorable Variable overhead costs Fixed overhead costs Total overhead costs Volume Variance $ 0 Volume variance Total overhead variance