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Antusn Compsny set the following stsndard coats per unit for ts praduct.

Direct saterials $(3\mathrm{.}6$ pounds e $$5\mathrm{.}6$ per pound$)$

The stsnciard overhesd rate $($ $$19\mathrm{.}50$ per direct labor haur$)$ is based an a predicted activity leve af $75\%$ of the factory's

capocty of $20,000$ unlts per month. Folowing sre the compsny"s budgeted overhesd costs per manth st the $75\%$

copocty level.

The company incurred the following actual costs when it operated at $75\%$ of capacity in October.

direct saterials $(46,$ abe pounds e $$5\mathrm{.}18$ por pound$)$

$$234,668$

direct labor $(19,$ Qes hours e $$11\mathrm{.}10$ per hour$)$

$210,908$

Overfiead corsts

$2$ Compute the direct materisls vsriance, Inclualing its price and quantity varlances.

Note: Indlcate the effect of each varlance by selecting favarable, unfavorable, or no variance.

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Antuan Company set the following standard costs per unit for its product.

Direct materials $(3\mathrm{.}0$ pounds @ $$5\mathrm{.}00$ per pound$)$ $ $15\mathrm{.}00$

Direct labor $(1\mathrm{.}9$ hours @ $$11\mathrm{.}00$ per hour$)20\mathrm{.}90$

Overhead $(1\mathrm{.}9$ hours @ $$18\mathrm{.}50$ per hour$)35\mathrm{.}15$

Standard cost per unit $ $71\mathrm{.}05$

The standard overhead rate $($$$18\mathrm{.}50$ per direct labor hour$)$ is based on a predicted activity level of $75\%$ of the factory$$s capacity of $20,000$ units per month. Following are the company$$s budgeted overhead costs per month at the $75\%$ capacity level.

Overhead Budget $(75\%$ Capacity$)$

Variable overhead costs

Indirect materials $ $15,000$

Indirect labor $75,000$

Power $15,000$

Maintenance $45,000$

Total variable overhead costs $150,000$

Fixed overhead costs

Depreciation$$Building $23,000$

Depreciation$$Machinery $70,000$

Taxes and insurance $17,000$

Supervisory salaries $267,250$

Total fixed overhead costs $377,250$

Total overhead costs $ $527,250$

The company incurred the following actual costs when it operated at $75\%$ of capacity in October.

Direct materials $(46,000$ pounds @ $$5\mathrm{.}10$ per pound$)$ $ $234,600$

Direct labor $(19,000$ hours @ $$11\mathrm{.}10$ per hour$)210,900$

Overhead costs

Indirect materials $ $41,550$

Indirect labor $176,300$

Power $17,250$

Maintenance $51,750$

Depreciation$$Building $23,000$

Depreciation$$Machinery $94,500$

Taxes and insurance $15,300$

Supervisory salaries $267,250686,900$

Total costs $ $1,132,400$