Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. @ $6.00 per Ib.) Direct labor (1.7 hrs. @ $14.00 per hr.) Overhead (1.7 hrs. @ $18.50 per hr.) Total standard cost $18.00 23.80 31.45 $73.25 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 costs Fixed overhead costs Depreciation-Building 25,000 Depreciation-Machinery 71,000 Taxes and insurance 18,000 Supervision 222,750 Total fixed overhead costs Total overhead costs $135,000 336, 750 $471, 750 The company incurred the following actual costs when it operated at 75% of capacity in October. The company incurred the following actual costs when it operated at 75% of capacity in October. $ 285,200 340, 800 Direct materials (46,000 lbs. @ $6.20 per lb.) Direct labor (24,000 hrs. @ $14.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,850 176,650 17, 250 34,500 25,000 95,850 16, 200 222,750 630, 050 $1,256, 050 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 AR = Actual Rate SR = Standard Rate Actual Cost Standard Cost