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[The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product.

Direct materials (3.0 Ibs. @ $5.00 per Ib.)	$	15.00
Direct labor (1.8 hrs. @ $13.00 per hr.)		23.40
Overhead (1.8 hrs. @ $18.50 per hr.)		33.30
Total standard cost	$	71.70

The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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		90,000
Power		30,000
Repairs and maintenance		30,000
Total variable overhead costs				$	180,000
Fixed overhead costs
DepreciationBuilding		23,000
DepreciationMachinery		72,000
Taxes and insurance		16,000
Supervision		208,500
Total fixed overhead costs					319,500
Total overhead costs				$	499,500

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

Direct materials (45,500 Ibs. @ $5.20 per lb.)				$	236,600
Direct labor (21,000 hrs. @ $13.20 per hr.)					277,200
Overhead costs
Indirect materials	$	41,900
Indirect labor		176,950
Power		34,500
Repairs and maintenance		34,500
DepreciationBuilding		23,000
DepreciationMachinery		97,200
Taxes and insurance		14,400
Supervision		208,500			630,950
Total costs				$	1,144,750

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

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