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Required information Problem 21-3A Flexible budget preparation; computation of 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 for one unit of its product. Direct materials (5.0 Ibs. $5.00 per Ib.) Direct labor (1.8 hrs. $12.00 per hr.) Overhead (1.8 hrs. $18.50 per hr.) Total standard cost $25.00 21.60 33.30 $79.90 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory's capacity of 20,000 units per month. Following are the comp ny's budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75+ Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $135,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 71,000 Taxes and insurance 16,000 Supervision 253,500 Total fixed overhead costs 364,500 Total overhead costs $499,500 The company incurred the following actual costs when it operated at 75% of capacity in October $ 392,600 246,000 Direct materials (75,500 lbs. & $5.20 per lb.) Direct labor (20,000 hrs. @ $12.30 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 41, 350 176, 250 17,250 34,500 24,000 95,850 14,400 253,500 657,100 $1,295, 700 Problem 21-3A Part 1&2 Required: 1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Flexible Budget for Variable Amount Total Fixed 65% of 75% of 85% of Cost capacity capacity capacity per Unit Sales (in units) Variable overhead costs $ 0.00 0 Fixed overhead costs 0 0 0 0 Total overhead costs

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