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Antuan Company set the following standard costs for one unit of its product Direct materials (3.0 lbs. $4.00 per Ib.) Direct labor (1.8 hrs. 514.00 per hr.) Overhead (1.8 hrs. @ $18.50 per hr.) Total standard cost $12.00 25.20 33.30 $70.50 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 $135,000 Fixed overhead costs Depreciation-Building 23,000 Depreciation-Machinery 72,000 Taxes and insurance 17,000 Supervision 252,500 Total fixed overhead costs 364,500 Total overhead costs $499,500 The company incurred the following actual costs when it operated at 75% of capacity in October $ 190,650 316,800 Direct materials (46,500 lbs. @ $4.19 per lb.) Direct labor (22,000 hrs. @ $14.40 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,100 176,950 17,250 34,500 23,000 97,200 15,300 252,500 657,800 $1,165,250 of 4 Flexible O Bongets For Month Ended October 31 Flexible Budget Flexible Budget for Variable Amount Total Fixed 65% of 75% of 85% of Cost capacity capacity capacity per Unit Sales (in units) Variable overhead costs ook + rences 0 0 0.00 Fixed overhead costs 0 0 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 Standard Cost $ $ 0 0 $ 4. Compute the direct labor cost variance, including its rate and efficiency variances (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance. Round "Rate per hour answers to two decimal places.) Actual Cost Standard cost 0 $ S 0 Required information Ovechend Variance Report For Month Ended October 31 Expected production volume Production level achieved Volume variance Flexible Budget Actual Results Variances Fav. / Unfav. Variable costs Fixed costs