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

Direct materials (4.0 Ibs. @ $6.00 per Ib.)$24.00Direct labor (1.7 hrs. @ $14.00 per hr.)23.80Overhead (1.7 hrs. @ $18.50 per hr.)31.45Total standard cost$79.25

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 (75% Capacity)Variable overhead costsIndirect materials$15,000Indirect labor75,000Power15,000

Repairs and maintenance30,000Total variable overhead costs$135,000Fixed overhead costsDepreciation?Building23,000Depreciation?Machinery71,000Taxes and insurance16,000Supervision226,750Total fixed overhead costs336,750Total overhead costs$471,750

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

Direct materials (61,500 Ibs. @ $6.20 per lb.)$381,300Direct labor (20,000 hrs. @ $14.40 per hr.)288,000Overhead costsIndirect materials$41,950Indirect labor176,400Power17,250Repairs and maintenance34,500Depreciation?Building23,000Depreciation?Machinery95,850Taxes and insurance14,400Supervision226,750630,100Total costs$1,299,400

rev: 03_28_2018_QC_CS-122864

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