Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 lbs. $6.00 per Ib.) Direct labor (1.7 hrs. $13.00 per hr.) Overhead (1.7 hrs. $18.50 per hr.) Total standard cost 518.00 22.10 31.45 $71.55 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 company's budgeted overhead costs per month at the 75% capacity level Overhead Budget (75Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30.000 Total variable overhead costs Fixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 71.000 Taxes and insurance 15,000 Supervision 223,750 Total fixed overhead costs Total overhead costs $135,000 336.25e 5471,750 The company incurred the following actual costs when it operated at 75% of capacity in October 5 283,650 303,600 Direct materials (46,500 lbs. @ 56.10 per lb.) Direct labor (23,600 hrs. 515.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation Building Depreciation Machinery Taxes and insurance Supervision Total costs $41,700 176,ese 17,250 34,500 24,00 95.35 16,200 223.250 629,300 $1,216,550 Problem 8-3A Part 4 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 Standard Cost 5 0 5 0