Antuan Company set the following standard costs for one unit of its product. Direct materials ((3.0 Ibs. @ $6.00 per Ib.) $ 18.00 Direct labor (1.7 hrs. @ $14.00 per hr.) 23.80 Overhead (1.7 hrs. @ $18.50 per hr.) 31.45 Total standard cost $73.25. 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% 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 24,000 Depreciationmachinery 70,000 Taxes and insurance 17,000 Supervision 196,000 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 (46,000 Ibs. @ $6.10 per lb.) $ 280,600 Direct labor (28,000 hrs. @ $14.20 per hr.) 397,600 Overhead costs Indirect materials $ 41,950 Indirect labor 176,500 Power 17,250 Repairs and maintenance 34,500 Depreciationbuilding 24,000 Depreciationmachinery 94,500 Taxes and insurance 15,300 Supervision 225,750 629,750 Total costs $ 1,307,950

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

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