26.

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 (1.7 hrs. @ $11.00 per hr.)		18.70
Overhead (1.7 hrs. @ $18.50 per hr.)		31.45
Total standard cost	$	65.15

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	$	15,000
Indirect labor		75,000
Power		15,000
Repairs and maintenance		30,000
Total variable overhead costs				$	135,000
Fixed overhead costs
DepreciationBuilding		25,000
DepreciationMachinery		71,000
Taxes and insurance		16,000
Supervision		224,750
Total fixed overhead costs					336,750
Total overhead costs				$	471,750

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

Direct materials (46,000 Ibs. @ $5.20 per lb.)				$	239,200
Direct labor (28,000 hrs. @ $11.10 per hr.)					310,800
Overhead costs
Indirect materials	$	41,400
Indirect labor		176,400
Power		17,250
Repairs and maintenance		34,500
DepreciationBuilding		25,000
DepreciationMachinery		95,850
Taxes and insurance		14,400
Supervision		224,750			629,550
Total costs				$	1,179,550

4. Compute the direct labor cost variance, including its rate and efficiency variances. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate

Actual Cost			0				0	Standard Cost
0				0				0
			$0	0			$0
				$0
				0