Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. @ $5.00 per Ib.) Direct labor (1.6 hrs. @ $11.00 per hr.) Overhead (1.6 hrs. e $18.50 per hr.) Total standard cost $15.00 17.60 29.60 $62.20 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 coats Pixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 71.000 Taxes and insurance 17,000 Supervision 197,000 Total fixed overhead coats Total overhead costs $135 309,000 $444,000 The company incurred the following actual costs when it operated at 75% of capacity in October $ 239,200 266,400 Direct materials (46,000 lbs. @ $5.20 per lb.) Direct labor (24,000 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 $ 41,450 176,350 17,250 34,500 24,000 95,850 15, 300 197,000 601,700 $1,107,300 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