4 Required Information Problem 8-3A (Algo) Flexible overhead budget; 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 per unit for its product. Direct materials (3.2 pounds @ $4.ee per pound) Direct labor (1.7 hours $13.ee per hour) Overhead (1.7 hours @ $18.5e per hour) Standard cost per unit $ 12.ee 22.10 31.45 $ 65.55 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory's capacity of 20,000 units per month. Following are the company's budgeted overhead costs per month at the 75% capacity level $ 15,000 75,eee 15,000 30, eee 135,000 Overhead Budget (75% Capacity) Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs * 25,00 71,eee 17,00 223,750 336,750 $ 471,750 The company Incurred the following actual costs when it operated at 75% of capacity in October $ 188,600 264,000 Direct materials (46, eee pounds @ $4.10 per pound) Direct labor (Ee,eee hours @ $13.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervisory salaries Total costs $ 41,1ee 176,25 17,25e 34,500 25, eee 95,85e 15,380 223,750 629,00 $1,681,600 Problem 8-3A (Algo) Part 3 3. Compute the direct labor varlance, including its rate and efficiency variances. (Indicate the effect of each varlance by selecting favorable, unfavorable, or no varlance. Round "Rate per hour" answers to two decimal places.) Answer is complete but not entirely correct. Actual Cost Standard Cost Actual hours Actual rate Actual hours X Standard rate Standard hours x Standard rate 20.000 x s 13.20 20.000 x s 13.00 15,000 X x Is 13.00 S 264.000 IS 200.000 S 195,000 $ 4,000 $ 65,000 $ 4.000 Unfavorable Direct labor rate variance Direct labor efficiency variance Direct labor variance OOO 65.000 61.000 x Favorable Favorable os