Required information Skip to question [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (5.0 pounds @ $6.00 per pound) $ 30.00 Direct labor (2.0 hours @ $10.00 per hour) 20.00 Overhead (2.0 hours @ $18.50 per hour) 37.00 Standard cost per unit $ 87.00 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factorys capacity of 20,000 units per month. Following are the companys 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 30,000 Total variable overhead costs 135,000 Fixed overhead costs DepreciationBuilding 24,000 DepreciationMachinery 72,000 Taxes and insurance 17,000 Supervisory salaries 307,000 Total fixed overhead costs 420,000 Total overhead costs $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (76,000 pounds @ $6.20 per pound) $ 471,200 Direct labor (20,000 hours @ $10.30 per hour) 206,000 Overhead costs Indirect materials $ 41,850 Indirect labor 176,800 Power 17,250 Maintenance 34,500 DepreciationBuilding 24,000 DepreciationMachinery 97,200 Taxes and insurance 15,300 Supervisory salaries 307,000 713,900 Total costs $ 1,391,100

3. Compute the direct labor variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to two decimal places.)