Direct materials (4.0 Ibs. @ $4.00 per Ib.) Direct labor (1.8 hrs. @ $11.00 per hr.). Overhead (1.8 hrs. @ $18.50 per hr.) Total standard cost $16.00 19.80 33.30 $69.10 The predetermined overhead rate ($18.50 per direct labor hout) 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 24,000 Depreciation Machinery 72,000 Taxes and insurance 16,000 Supervision 252,500 Total fixed overhead costs Total overhead costs $135,000 364,500 5499,500 The company incurred the following actual costs when it operated at 75% of capacity in October $250, 100 248,640 Direct materials (61,000 TO. H.10 per lb) Director (22.000 hrs. $11.30 per hr.) Overhe cost Indirect materials Indirect labor $41.100 176,200 17.250 34,500 Wepairs and maintenance Depreciation in Depreciation Machinery Supervision 1200 14.40 Problem 21-3A Part 3 3. Compute the direct materials cost variance, including its price and quantity variances (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Actual Cost Actual quantity 61.000 Answer is complete but not entirely correct. Actual price 620 378200 Actualquantity 51000 Standard price 6.00 Standard Cost Standard quantity 80,000 12,200 3 000 Drect matters place Det mesta Toured mange Standard price 600 5 $6,000 350.000 12,200 5000 15200 Urfavorable Unavorable Unfavorable bere to search 2