The standard overhead rate $($$$18\mathrm{.}50$ per direct labor hour$)$ is based on a predicted activity level of $75\%$ of the factory$$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$$Indirect materials$ $45,000$Indirect labor$180,000$Power$45,000$Maintenance$90,000$Total variable overhead costs$360,000$Fixed overhead costs$$Depreciation$$Building$24,000$Depreciation$$Machinery$80,000$Taxes and insurance$12,000$Supervisory salaries$79,000$Total fixed overhead costs$195,000$Total overhead costs$ $555,000$

The company incurred the following actual costs when it operated at $75\%$ of capacity in October.

Direct materials $(91,000$ pounds @ $$5\mathrm{.}10$ per pound$)$$ $464,100$Direct labor $(30,500$ hours @ $$17\mathrm{.}25$ per hour$)526,125$Overhead costs$$Indirect materials$ $44,250$Indirect labor$177,750$Power$43,000$Maintenance$96,000$Depreciation$$Building$24,000$Depreciation$$Machinery$75,000$Taxes and insurance$11,500$Supervisory salaries$89,000560,500$Total costs$$$ $1,550,725$

$4.$ Prepare a detailed overhead variance report that shows the variances for individual items of overhead.

Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.