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

Direct materials (4.0 Ibs. @ $4.00 per Ib.)	$	16.00
Direct labor (2.0 hrs. @ $11.00 per hr.)		22.00
Overhead (2.0 hrs. @ $18.50 per hr.)		37.00
Total standard cost	$	75.00

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		25,000
Depreciationmachinery		72,000
Taxes and insurance		18,000
Supervision		305,000
Total fixed overhead costs					420,000
Total overhead costs				$	555,000

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

Direct materials (61,000 Ibs. @ $4.20 per lb.)				$	256,200
Direct labor (29,000 hrs. @ $11.10 per hr.)					321,900
Overhead costs
Indirect materials	$	41,500
Indirect labor		176,350
Power		17,250
Repairs and maintenance		34,500
Depreciationbuilding		25,000
Depreciationmachinery		97,200
Taxes and insurance		16,200
Supervision		305,000			713,000
Total costs				$	1,291,100

4.	Compute the direct labor cost variance, including its rate and efficiency variances.

9.

Required information

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