Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $4.00 per pound) Direct labor (1.9 hours a $10.00 per hour) Overhead (1.9 hours @ $18.50 per hour) Standard cost per unit $ 16.00 19.00 35.15 $ 70.15 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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. $ 15,000 75,000 15,000 30,000 135,000 Overhead Budget (758 Capacity) Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs 24,000 72,000 18.000 278, 250 392, 250 $ 527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 252, 150 204,000 Direct materials (61,500 pounds & $4.10 per pound) Direct labor (20,000 hours $10.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,700 176,450 17,250 34,500 24,000 97,200 16,200 278, 250 685,550 $ 1,141,700 . Compute the direct labor variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting avorable, unfavorable, or no variance. Round "Rate per hour" answers to two decimal places.) Actual Cost Standard Cost S $ 0 0 $ $ 0 0 S $ 0 of 0 The following information relates to production activities of Mercer Manufacturing for the year. Actual direct materials used Actual direct labor used Actual units produced Standard quantity and price per unit for direct materials Standard quantity and rate per unit for direct labor 16,700 pounds at $4.40 per pound 17,335 hours at $26 per hour 31,400 0.50 pound at $4.35 per pound 0.50 hour at $27 per hour AR - Actual Rate SR = Standard Rate AQ - Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate and efficiency variances. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct labor rate and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Standard Cost X $ 0 $ 0 $ 0 0
