Problem 08-3A Flexible budget preparation; computation ofmaterials, labor, and overhead variances; and overhead variancereport LO P1, P2, P3, P4 Skip to question [The followinginformation applies to the questions displayed below.] AntuanCompany set the following standard costs for one unit of itsproduct. Direct materials (4.0 Ibs. @ $6.00 per Ib.) $ 24.00 Directlabor (1.9 hrs. @ $13.00 per hr.) 24.70 Overhead (1.9 hrs. @ $18.50per hr.) 35.15 Total standard cost $ 83.85 The predeterminedoverhead rate ($18.50 per direct labor hour) is based on anexpected volume of 75% of the factory’s capacity of 20,000 unitsper month. Following are the company’s budgeted overhead costs permonth at the 75% capacity level. Overhead Budget (75% Capacity)Variable overhead costs Indirect materials $ 15,000 Indirect labor90,000 Power 15,000 Repairs and maintenance 30,000 Total variableoverhead costs $ 150,000 Fixed overhead costs Depreciation—Building24,000 Depreciation—Machinery 72,000 Taxes and insurance 18,000Supervision 263,250 Total fixed overhead costs 377,250 Totaloverhead costs $ 527,250 The company incurred the following actualcosts when it operated at 75% of capacity in October. Directmaterials (61,000 Ibs. @ $6.20 per lb.) $ 378,200 Direct labor(22,000 hrs. @ $13.10 per hr.) 288,200 Overhead costs Indirectmaterials $ 41,050 Indirect labor 176,800 Power 17,250 Repairs andmaintenance 34,500 Depreciation—Building 24,000Depreciation—Machinery 97,200 Taxes and insurance 16,200Supervision 263,250 670,250 Total costs $ 1,336,650 rev:04_27_2020_QC_CS-209738

Problem 08-3A Part 5 5. Prepare a detailed overhead variancereport that shows the variances for individual items of overhead.(Indicate the effect of each variance by selecting for favorable,unfavorable, and No variance.)