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 (4.2 pounds @ $5.00 per pound) $ 20.00 Direct labor (2.0 hours @ $12.00 per hour) 24.00 overhead (2.0 hours @ $18.50 per hour) 37.ee Standard cost per unit $ 81.00 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,eee Indirect labor 75, eee Power 15, eee Maintenance 30, eee Total variable overhead costs 135, eee Fixed overhead costs Depreciation-Building 25, eee Depreciation-Machinery 71, eee Taxes and insurance 16,eee Supervisory salaries 308, eee Total fixed overhead costs 420, eee Total overhead costs $ 555, eee The company Incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 pounds @ $5.10 per pound) $ 311,108 Direct labor (20,620 hours @ $12.30 per hour) 246,888 Overhead costs Indirect materials $ 41,000 Indirect labor 176,800 Power 17,250 Maintenance 34,580 Depreciation-Building 25,000 Depreciation-Machinery 95,850 Taxes and insurance 14,400 Supervisory salaries 308,888 712,800 Total costs $ 1,269,900 Required: 1. Prepare flexible overhead budgets for October showing amounts of each varlable and fixed cost at the 65%, 75%, and 85% capacity levels. ANTUAN COMPANY Flexible Overhead Budgets Variable Amount Total Fixed Flexible Budget at Capacity Level of per Unit Cost 65% 75% 85% For Month Ended October 31 Production (in units) Variable overhead costs Fixed overhead costs Total overhead costs 2. Compute the direct materials varlance, including its price and quantity variances. (Indicate the effect of each varlance by selecting favorable, unfavorable, or no varlance.) Actual Cost Standard Cost 0 $ 0 S 0 $ 0 3. Compute the direct labor varlance, including its rate and efficiency variances. (Indicate the effect of each varlance by selecting favorable, unfavorable, or no varlance. Round "Rate per hour" answers to two decimal places.) Actual Cost Standard Cost 4. Prepare a detailed overhead varlance report that shows the variances for Individual items of overhead. (Indicate the effect of each varlance by selecting favorable, unfavorable, or no varlance.) 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 Volume variance Total overhead variance