Antuan Company set the following standard costs per unit for its product.

Direct materials (3.0 pounds @ $4.00 per pound)	$ 12.00
Direct labor (1.8 hours @ $12.00 per hour)	21.60
Overhead (1.8 hours @ $18.50 per hour)	33.30
Standard cost per unit	$ 66.90

The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factorys capacity of 20,000 units per month. Following are the companys budgeted overhead costs per month at the 75% capacity level.

Overhead Budget (75% Capacity)
Variable overhead costs
Indirect materials	$ 30,000
Indirect labor	75,000
Power	30,000
Maintenance	30,000
Total variable overhead costs	165,000
Fixed overhead costs
DepreciationBuilding	24,000
DepreciationMachinery	71,000
Taxes and insurance	17,000
Supervisory salaries	222,500
Total fixed overhead costs	334,500
Total overhead costs	$ 499,500

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

Direct materials (46,000 pounds @ $4.20 per pound)		$ 193,200
Direct labor (22,000 hours @ $12.20 per hour)		268,400
Overhead costs
Indirect materials	$ 41,850
Indirect labor	176,500
Power	34,500
Maintenance	34,500
DepreciationBuilding	24,000
DepreciationMachinery	95,850
Taxes and insurance	15,300
Supervisory salaries	222,500	645,000
Total costs		$ 1,106,600

4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)

	ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume Variance Flexible Budget Actual Results Variances Favorable/Unfavorable Variable overhead costs Fixed overhead costs Total overhead costs Volume Variance Volume variance Total overhead variance