[The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (5.0 Ibs. $5.00 per Ib.) Direct labor (1.7 hrs. $11.00 per hr.) Overhead (1.7 hrs.@$18.50 per hr.) $25.00 18.70 31.45 Total standard cost $75.15 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 (75% Capacity) Variable overhead costs Indirect materials $. 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $135,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery 24,000 71,000 17,000 224,756 Taxes and insurance Supervision Total fixed overhead costs 336,750 Total overhead costs $471,750 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (76,500 Ibs. $5.20 per lb Direct labor (20,000 hrs. $11.40 per hr.) Overhead costs $ 397,800 228,000 $ 41,700 176,750 17,250 Indirect materials Indirect labor Power 34, 500 24,000 95,850 15,300 Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision 224,750 630,100 $1,255,900 Total costs Pre Next > 3 4 5 of 18 Required 182. 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 ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Flexible Budget for Variable Amount Total Fixed Cost 65% of 75% of 85% of er Unit ca ca ca 15,000 Sales (in units) 13,000 17,000 Variable overhead costs 30,000 Indirect materials 2.00 26,000 34,000 65,000 75,000 85,000 Indirect labor 5.00 30,000 Power 2.00 26,000 34,000 30,000 34,000 Repairs and maintenance 2.00 26,000 11.00 143,000 otal variable costs 165,000 187,000 Fixed overhead costs Depreciation-Building 23,000 23,000 23,000 23,000 72,000 72,000 72,000 72,000 Depreciation-Machinery 17,000 17,000 17,000 17,000 Taxes and insuranc 222,500 222,500 222,500 222,500 Supervision otal fixed costs 334,500 334,500 334,500 334,500 $477,500499,500 521,500 Total overhead costs 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 sQ AQ AP AQ 61,500 61,500 60,000 $ 4.10 $ 4.00 $ 4.00 252,150 246,000 240,000 $ 6,150 $ 6,000 Direct materials price variance $ 6,150Unfavorable Direct materials quantity variance 6,000Unfavorable $12,150 Unfavorable Total direct materials variance 4. Compute the direct labor cost variance, including its rate and efficiency variances. AH-Actual Hours SH Standard Hours AR Actual Rate SR-Standard Rate Actual Cost Standard Cost AH AR SR SH SR AH Direct labor rate variance Direct labor efficiency variance Total direct labor variance 5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume 75% of capacity Production level achieved 5% of capacity Volume variance o variance Flexible Budget Actual Results Variances Fav./ Unfav Variable costs Indirect materials Indirect labor Power Repairs and maintenance Fixed costs Depreciation-Building Depreciation-Machinery Taxes and insuran ce Supervision Total overhead costs