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Antuan Company set the following standard costs for one unit of its product. Direct materials (3.2 Ibs. @ $4.00 per Ib.) Direct labor (1.8 hrs.

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Antuan Company set the following standard costs for one unit of its product. Direct materials (3.2 Ibs. @ $4.00 per Ib.) Direct labor (1.8 hrs. @ $13.00 per hr.) Overhead (1.8 hrs. @ $18.50 per hr.) Total standard cost $12.ee 23.40 33.30 $68.70 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, eee Power 15, eee Repairs and maintenance 30, eee Total variable overhead costs Fixed overhead costs Depreciation-Building 25,000 Depreciation Machinery 71,eee Taxes and insurance 17,80 Supervision 251,500 $135,000 TELA 26A COD Total fixed overhead costs Total overhead costs 364,500 $499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 188,600 250,800 Direct materials (46,000 lbs. @ $4.10 per lb.) Direct labor (19,000 hrs. @ $13.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,700 176,900 17,250 34,500 25,000 95,850 15,300 251,500 658,000 $1,097, 400 3. Compute the direct materials cost variance, including its price and quantity variances. 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 Actual Cost AQ AQ Standard Cost X X SP SQ SP $ 0 $ of 01 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 S 0 $ 0

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