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. @ $12.00 per hr.)		21.60
Overhead (1.8 hrs. @ $18.50 per hr.)		33.30
Total standard cost	$	69.90

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		90,000
Power		15,000
Repairs and maintenance		30,000
Total variable overhead costs				$	150,000
Fixed overhead costs
DepreciationBuilding		23,000
DepreciationMachinery		70,000
Taxes and insurance		17,000
Supervision		239,500
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 (46,000 Ibs. @ $5.20 per lb.)				$	239,200
Direct labor (19,000 hrs. @ $12.30 per hr.)					233,700
Overhead costs
Indirect materials	$	41,600
Indirect labor		176,500
Power		17,250
Repairs and maintenance		34,500
DepreciationBuilding		23,000
DepreciationMachinery		94,500
Taxes and insurance		15,300
Supervision		239,500			642,150
Total costs				$	1,115,050

rev: 04_27_2020_QC_CS-209738

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 ANTUAN COMPANY Overhead Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume variance Flexible Budget Actual Results Variances Fav. / Unfav. Variable costs Fixed costs Total overhead costs