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 @ $5.00 per pound) $ 15.00 Direct labor (1.8 hours @ $11.00 per hour) 19.30 Overhead (1.8 hours $18.50 per hour) 33.30 Standard cost per unit $ 68.10 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 Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs $ 15,000 75,000 15,000 30,000 135,000 23,000 71,000 18,000 252,500 364,500 $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (46,008 pounds a $5.19 per pound) $ 234,600 Direct labor (21,808 hours $11.20 per hour) 235,200 $ 15,000 75,000 15,000 30,000 135,000 Overhead Budget (75% Capacity) Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs 23,000 71,000 18,000 252,500 364,500 $ 499,500 The company incurred the following actual costs when it operated ot 75% of capacity in October Direct materials (46,000 pounds @ $5.10 per pound) $ 234,600 Direct labor (21,000 hours @ $11.20 per hour) 235, 200 Overhead costs Indirect materials $ 41,950 Indirect labor 176,500 Power 17,250 Maintenance 34,500 Depreciation-Building 23,000 Depreciation-Machinery 95,850 Taxes and insurance 16,200 Supervisory salaries 252,500 657,750 Total costs $ 1,127,550 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 Flexible Budget at Capacity Level of Variable Amount Total Fixed per Unit Cast 65% 75% 85% For Month Ended October 31 Production (in units) Variable overhead costs $ 0.00 $ 0$ 0$ 0 Fixed overhead costs $ 0 $ 0 $ 0$ 0 Total overhead costs 0.21.22 Saved Help Submit Save & Exit $ 234,600 235,200 Direct materials (46.000 pounds @ $5.10 per pound) Direct labor (21,000 hours @ $11.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervisory salaries Total costs $ 41,950 176,500 17,250 34,500 23,000 95,850 16,200 252,500 657.750 $ 1,127,550 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 Co 0 $ 0 $ 0 $