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

Direct materials (5.0 Ibs. @ $6.00 per Ib.) $ 30.00 Direct labor (1.7 hrs. @ $13.00 per hr.) 22.10 Overhead (1.7 hrs. @ $18.50 per hr.) 31.45 Total standard cost $ 83.55

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 (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000

Repairs and maintenance 30,000 Total variable overhead costs $ 135,000 Fixed overhead costs Depreciation?Building 24,000 Depreciation?Machinery 72,000 Taxes and insurance 18,000 Supervision 222,750 Total fixed overhead costs 336,750 Total overhead costs $ 471,750

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

Direct materials (76,000 Ibs. @ $6.10 per lb.) $ 463,600 Direct labor (22,000 hrs. @ $13.20 per hr.) 290,400 Overhead costs Indirect materials $ 41,450 Indirect labor 176,550 Power 17,250 Repairs and maintenance 34,500 Depreciation?Building 24,000 Depreciation?Machinery 97,200 Taxes and insurance 16,200 Supervision 222,750 629,900 Total costs $ 1,383,900

4. Compute the direct labor cost variance, including its rate and efciency variances. {Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance. Round "Rate per hour\" answers to two decimal places.)