Suncoast Company set the following standard costs per unit for its product. The standard overhead rate ( $16 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. The company incurred the following actual costs when it operated at 75% of capacity in December. Required 1. Prepare flexible overhead budgets (as in ( Exhibit 21.12) for December showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. 2. Compute the direct materials variance, including its price and quantity variances. 3. Compute the direct labor variance, including its rate and efficiency variances. 4. Prepare a detailed overhead variance report (as in Exhibit 21.16) that shows the variances for individual items of overhead