! Required information [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $5.00 per pound) $ 20.00 Direct labor (1.8 hours @ $11.00 per hour) 19.80 33.30 Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit $ 73.10 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 30,000 135,000 Total variable overhead costs Fixed overhead costs 23,000 Depreciation-Building Depreciation-Machinery Taxes and insurance. 70,000 16,000 Supervisory salaries 255,500 Total fixed overhead costs. 364,500 Total overhead costs. $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 pounds @ $5.20 per pound) Direct labor (22,000 hours @ $11.20 per hour) $ 317,200 246,400 Overhead costs $ 41,200 Indirect materials Indirect labor 176, 350 Power 17,250 Maintenance 34,500 23,000 94,500 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries. 14,400 255,500 656,700 Total costs $ 1,220,300
Expected production volume Production level achieved Volume Variance Variable overhead costs Indirect materials Power Maintenance Fixed overhead costs Total overhead costs Volume Variance Volume variance Total overhead variance ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 75% of capacity 75% of capacity No variance Flexible Budget Actual Results Variances Favorable/Unfavorable $ 0