Saved Antuan Company set the following standard costs for one unit of its product. Direct materials (3.2 Ibs. $5.00 per 15 Ib.) Direct labor (1.6 hrs. @ $14.80 per hr.) 22.40 Overhead (1.6 hrs. e $18.50 per hr.) 29.60 Total standard cost $67.00 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 (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15, eee Repairs and maintenance 30,000 Total variable overhead costs Fixed overhead costs Depreciation Building 23,000 Depreciation Machinery 72,000 Taxes and insurance 16,000 Supervision 198,800 Total fixed overhead costs Total overhead costs $135,00 309.000 $400,000 The company incurred the following actual costs when it operated at 75% of capacity in October The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (46,500 lbs. @ $5.20 $ 241,800 per lb.) Direct labor (19,000 hrs. @ $14.20 per hr.) 269,800 Overhead costs Indirect materials $ 41,600 Indirect labor 176,850 Power 17,250 Repairs and maintenance 34,500 Depreciation-Building 23,000 Depreciation-Machinery Taxes and insurance 97,200 14,400 Supervision 198,000 602,800 Total costs $1,114,400 Required: 182. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at capacity levels and classify all items listed in the fixed budget as variable or fixed. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Variable Amount Total Fixed per Unit 65% of Cost capacity Flexible Budget for 75% of capacity 85% of capacity to search o e a $ $ 3. Compute the direct materials cost variance, including its price and quantity variances. AQ = Actual Quantity SQ - Standard Quantity AP = Actual Price SP = Standard Price Actual Cost Standard Cost 4 5 of 5 Next > to search 20 points 4. Compute the direct labor cost variance, including its rate and efficiency variances eBook AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Print References Actual Cost Standard Cost