Antuan Company set the following standard costs for one unit of its product.

Direct materials (3.0 Ibs. @ $6.00 per Ib.)	$	18.00
Direct labor (1.8 hrs. @ $12.00 per hr.)		21.60
Overhead (1.8 hrs. @ $18.50 per hr.)		33.30
Total standard cost	$	72.90

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		45,000
Total variable overhead costs				$	150,000
Fixed overhead costs
DepreciationBuilding		23,000
DepreciationMachinery		72,000
Taxes and insurance		18,000
Supervision		236,500
Total fixed overhead costs					349,500
Total overhead costs				$	499,500

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

Direct materials (46,500 Ibs. @ $6.20 per lb.)				$	288,300
Direct labor (20,000 hrs. @ $12.30 per hr.)					246,000
Overhead costs
Indirect materials	$	41,850
Indirect labor		176,650
Power		17,250
Repairs and maintenance		51,750
DepreciationBuilding		23,000
DepreciationMachinery		97,200
Taxes and insurance		16,200
Supervision		236,500			660,400
Total costs				$	1,194,700

3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.)

3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Actual Cost Standard Cost 0 0 0 $ 0 0 $ 0 $ 0 0 4. Compute the direct labor cost variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance. Round "Rate per hour" answers to two decimal places.) Actual Cost Standard Cost $ 0 $ 0 $ 01