Problem 21-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, C2 [The following information applies to the questions displayed below.) Antuan Company set the following standard costs for one unit of its product. Direct materiale (3.0 Ibs. $5.00 per Ib. ) Direct labor (1.7 hrs. @ $10.00 per hr.) Overhead (1.7 hrs. $18.50 per hr.) Total standard coat $15.00 17.00 31.45 $63.45 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 (758 Capacity) Variable overhead conta Indirect materiala $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead cost Fixed overhead coats Depreciation-Duilding 23,000 Depreciation Machinery 92.000 Taxes and insurance 18,000 Supervision 223.750 Total fixed overhead conto Total overhead costs $135,000 336.750 5473.750 The company locurred the followina actual costs when it operated at 75% of capacity in October $ 234,600 226,600 Direct materials (46,000 Ibs. @ $5.10 per 1b.) Direct labor (22,000 hrs. $10.30 per hr.) Overhead coats Indirect materials Indirect labor Power Repairs and maintenance Depreciation Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,600 176,950 17,250 34,500 23,000 97,200 16,200 223,750 630,450 $1,091,650 Problem 21-3A Part 4 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