Required information (The following information applies to the questions displayed below.) Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. @ $5.00 per Ib.) $15.00 Direct labor (1.7 hrs. @ $11.00 per hr.) 18.70 Overhead (1.7 hrs. @ $18.50 per hr.) 31.45 Total standard cost $65.15 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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 (758 Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 45,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 70,000 Taxes and insurance 17,000 Supervision 210, 750 Total fixed overhead costs Total overhead costs $150,000 321,750 $ 471,750 The company incurred the following actual costs when it operated at 75% of capacity in October $ 234,600 226,000 Direct materials (46,000 Ibs. @ $5.10 per lb.) Direct labor (20,000 hrs. & $11.30 per hr.) overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 42,000 176,900 17,250 51,750 24,000 94,500 15,300 210,750 632,450 $1,093,050 Required: 1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed. Answer is complete but not entirely correct. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Flexible Budget for Variable Total 65% of Amount per Fixed 75% of 85% of Cost capacity capacity capacity 17.333X 20,000 22,667 Unit S Sales (in units) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance 0.75 X 3.75 X 0.75X 13,000 65,000 13,000 26,000% 15,000 75,000 15,000 30,000 17,000 85,000 17,000 34,000 1.50 X $ 6.75 117,000 135,000 153,000 $ Total variable costs Fixed overhead costs Depreciation-Building Depreciation Machinery Taxes and insurance Supervision 25,000 25,000 71,000 71,000 16,000 16,000 224,750 224,750% 25,000 71,000 16,000 224,750 25,000 71,000% 16,000 224,750 336,750 Total fixed costs Total overhead costs 336,750 336,750 $453,750 X $ 471,750 336,750 $ 489,750 X 3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Actual Cost Standard Cost 4. Compute the direct labor cost variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance. Round "Rate per hour answers to two decimal places.) Actual Cost Standard Cost 5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume variance Actual Flexible Budget Results Variances Fav. / Unfav. Variable costs Fixed costs Total overhead costs