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

Direct materials (5.0 Ibs. @ $5.00 per Ib.)	$	25.00
Direct labor (1.7 hrs. @ $11.00 per hr.)		18.70
Overhead (1.7 hrs. @ $18.50 per hr.)		31.45
Total standard cost	$	75.15

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		75,000
Power		15,000
Repairs and maintenance		30,000
Total variable overhead costs				$	135,000
Fixed overhead costs
DepreciationBuilding		23,000
DepreciationMachinery		71,000
Taxes and insurance		18,000
Supervision		224,750
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. @ $5.10 per lb.)				$	387,600
Direct labor (21,000 hrs. @ $11.30 per hr.)					237,300
Overhead costs
Indirect materials	$	41,250
Indirect labor		176,200
Power		17,250
Repairs and maintenance		34,500
DepreciationBuilding		23,000
DepreciationMachinery		95,850
Taxes and insurance		16,200
Supervision		224,750			629,000
Total costs				$	1,253,900

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

5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead.

Ch Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision 34,588 23,888 95,858 16, 200 224, 758 629,eee $1,253,988 Part 3 of 4 Total costs 10 points 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 eBook Print Actual Cost Standard Cost AH AR AH SR SH SR References 21,000 S 11.30 21.000 5 11.00 S 22 237,300 Direct labor rate variance Direct labor efficiency variance Total direct labor variance