Required Information Problem 8-3A (Algo) Flexible overhead budget; materials, labor, and overhead variances; and overhead 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 31.45 $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 $15,00 Indirect labor 25,000 Power 15,000 Maintenance Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building 25,000 Depreciation-Machinery 70,000 Taxes and insurance 17,000 Supervisory salaries 224,750 Total fixed overhead costs 336,758 Total overhead costs $ 471,750 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 Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $252,150 252,700 $41,858 176,150 17,258 34,500 25,000 94,500 15,300 224.750 629,300 $1,134,150 Problem 8-3A (Algo) Part 2 2. Compute the direct materials variance, including its price and quantity variances (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Capecity 2000 unis pes U FUBUWing are use company s uuuyeieu uveau custs per mun apacity level Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $15,000 Indirect labor 75,000 Power 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building 25,000 Depreciation-Machinery Taxes and insurance Supervisory salaries 70,000 17,000 224,750 Total fixed overhead costs Total overhead costs 336-750 1 471,750 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (63,500 pounds #34.30 per pound) Direct labor (15,000 hours $13.30 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $252,150 252,700 341,850 176,150 17,250 34,500 25,000 94,500 15,300 224,750 629,300 $ 1,134,150 Problem 8-3A (Algo) Part 2 2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost $ o Standard Cost