Required information Problem 08-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, P4 (The following information applies to the questions displayed below.) Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 lbs. @ $5.00 per Ib.) Direct labor (2.0 hrs. @ $10.00 per hr.) Overhead (2.0 hrs. @ $18.50 per hr.) Total standard cost $15.00 20.00 37.00 $72.00 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 Save level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 90,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 71,000 Taxes and insurance 17,000 Supervision 293,000 Total fixed overhead costs Total overhead costs $150,000 405,000 $555,000 The company incurred the following actual costs when it operated at 75% of capacity in October 241,800 202,000 Direct materials (46,500 lbs. @ $5.20 per lb.) Direct labor (20,000 hrs. @ $10.10 per hr.) Overhead costs Indirect materials Indirect labor Power $ 41,600 176,55 17.250 Che Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 41,600 176,550 17,250 34,5e 24,000 95,850 15,300 293.000 698,ese $1,141,850 Problem 08-3A Part 4 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 Problem 08-3A Part 4 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 "Rote per hour" answers to two decimal places.) Actual COSI Stand ng its rate and efficiency variances (Indicate the effect of each variance by iance. Round "Rate per hour" answers to two decimal places.) Standard cost