variance report LO P1, P2, P3, P4 [The following information applies to the questions displayed below Antuan Company set the following standard costs per unit for its product. Direct materials (4.8 pounds $4.00 per pound) Direct labor (1-7 hours @ $13.00 per hour) Overhead (1.7 hours $18.50 per hour) Standard cost per unit $ 16.00 22.10 $69.55 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 $15,000 Indirect labor 75,000 Power 15,000 Maintenance Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building 25,000 Depreciation-Machinery 70,000 17,000 Supe salaries Total fixed overhead costs 224,750 336,250 $ 471,750 total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,500 pounds @ $4.10 per pound) Direct Labor (19,000 hours $13.30 per hour) Overhead costs Indirect materials Indirect labor Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 252,150 252,700 $41,850 176,158 17,250 34,500 25,000 94,500 15,300 224,758 629,300 $1,134,150 Problem 8-3A (Algo) Part 4 4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each varlance by selecting favorable, unfavorable, or no variance.) Answer is complete but not entirely correct. ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production 75% of capacity volume Production level achieved 75% of capacity Volume Variance No variance Flexible Budget Actual Results Variances Favorable/Unfavorable Variable overhead costs Indirect materials 15.000 S 41,850 S 26,850 Unfavorable Indirect labor 75,000 176.150 101.150 Unfavorable Power 15,000 17.250 2,250 Unfavorable Maintenance 30,000 34,500 4,500 Unfavorable Total variable overhead costs 135,000 209,750 134,750 Unfavorable Fixed overhead costs Depreciation-Building 25,000 25.000 No variance Depreciation-Machinery 70,000 94.500 24,500 Unfavorable Taxes and insurance 17,000 15,300 1,700 Favorable Supervisory salaries 224,750 224,750 0 No variance Total foxed overhead costs 336,750 359,550 S 22,800 Unfavorable Total overhead costs $ 471,750 $ 629.300 $ 157,550 Unfavorable Volume Variance Budgeted (flexible) overhead Standard overhead applied Volume variance Total overhead variance S 336,750 x $ 336,750 S 0 No variance $ 673,500 Unfavorable 0000