A one-month budget allowance of factory overhead for the Assembly Department of the Orson Company is as follows:
Activity Base: 1,350 direct labor hours per month at normal capacity, which is 90% of rated capacity

Actual production for August required 1,290 direct labor hours. Actual costs for August are as follow:

Required:
(1) Prepare a flexible budget for the Assembly Department at the 80%, 90%, 100%, and 110% levels of the rated capacity. Fixed costs are expected to be constant from the 80% to 110% level of capacity.
(2) Prepare a variance report for August, assuming factory overhead was charged to production at a predetermined rate for normal capacity (i.e., 90% of rated capacity). The variance report should show the spending variance for each item of cost and a single idle capacity variance for the department.

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Variable Rate per Labor $2.25 1.20 of Cost Repair and maintenance.. Employee pension costs Employee health plan Machinery depreciation $13,500.00 $5.00 $13,500.00 Variable cost (1,350 direct labor hours x $5.00 variable rate).6,750.00 $20,250.00 Factory overhead rate for Assembly Department at normal capacity ($20,250/1,350 hours) $15.00 per direct labor hour Indirect labora. Supervision Factory supplies Power... Rework operations .. Payroll taxes. Repair and maintenance Property insurance … Property taxes.. Vacation pay Employee pension costs.. Employee health plan .. $5,750.00 1,800.00 2,154.00 615.00 1,088.25 1,451.50 1,525.75 165.00 210.50 2,200.00 1,200.00 500.00 450.00 465.00 900.00 ー1.385.00 $21,860.00 Water and heat...t. Buidingoccupancy. General factory Total cost for August.