Antuan Company set the following standard costs for one unit of its product. $20.00 Direct materials (4.0 Ibs. @ $5.00 per Ib.) Direct labor (1.9 hrs. @ $11.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) 20.90 35.15 Total standard cost $76.05 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 (759 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 23,000 Depreciation Machinery 72,000 Taxes and insurance 18,000 Supervision 279, 250 Total Fixed overhead costs $135,000 392, 250 Total overhead costs $527, 250 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,500 Ibs. @ $5.20 per lb.) Direct labor (23,000 hrs. @ $11.40 per hr.) 319, 800 262,200 Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision $ 41,600 176,000 17,250 34,500 23,000 97,200 16, 200 279, 250 685,000 Total costs $1,267,000 4. Compute the direct labor cost varlance, including its rate and efficiency variances. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and No varlance. Round "Rate per hour" answers to two decimal places.) Actual Cost Standard Cost Actual hours Actual rate Actual hours Standard rate Standard hours Standard rate X X $ 0 $ 0 Direct labor rate variance $ 0 Direct labor efficiency variance 0 Total direct labor variance