Antuan Company set the following standard costs for one unit of its product Direct materials (4.0 lbs. $6.00 per Ib.) Direct labor (1.9 hrs. @ $11.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) Total standard cost $24.00 20.se 35.15 530.05 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% capacit level Overhead Dudget (95% Capacity) Variable overhead costs Indirect materials 5 15,000 Indirect labor 75,000 Power 15,000 Repairs and saintenance 30.000 Total variable overhead costs Fixed overhead costs Depreciation-Building 25,000 Depreciation-chinery 72,000 Taxes and insurance 16,000 Supervision 279,250 Total fixed overhead costs Total overhead costs $135.000 392,250 5527,250 Search O i G ER The company incurred the following actual costs when it operated at 75% of capacity in October $ 381,300 266,400 12 Direct materials (61,500 lbs. $6.20 per lb.) Direct labor (24,600 hrs. $11.10 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs 5 41,000 176,400 17,250 34,500 25,000 97,200 14,400 279, 250 ed 685,000 $1,332,700 nces 3. Compute the direct materials cost variance, including its price and quantity variances. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP - Standard Price re to search O 3 $ Saved 3. Compute the direct materials cost variance, including its price and quantity variances AQ - Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Actual Cost Standard Cost 0 $ 0 S 0 0 It 2 i 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 $ 0 S 0 ces $ 0 0 e to search O E