Required information [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $11.00 per hour) Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit $ 20.00 19.80 33.30 $ 73.10 The standard overhead rate ($18.50 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 Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs $ 15,000 75,000 15,000 30,000 135,000 23,000 70,000 16,000 255,500 364,500 $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 pounds @ $5.20 per pound) Direct labor (22,000 hours @ $11.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,200 176,350 17,250 34,500 23,000 94,500 14,400 255,500 $ 317,200 246,400 656,700 $ 1,220,300 ANTUAN COMPANY Flexible Overhead Budgets Flexible Budget at Capacity Level of Variable Amount Total Fixed For Month Ended October 31 per Unit Cost 65% 75% 85% Production (in units) 13,000 15,000 17,000 Variable overhead costs Indirect materials Indirect labor $ 1.00 $ 13,000 $ 15,000 $ 17,000 5.00 65,000 75,000 85,000 Power 1.00 13,000 15,000 17,000 Maintenance 2.00 26,000 30,000 34,000 Total variable overhead $ 9.00 Fixed overhead costs Depreciation-Building $ 117,000 $ 135,000 $153,000 Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead Total overhead costs $ 23,000 $ 23,000 $ 23,000 $ 23,000 71,000 71,000 71,000 71,000 17,000 17,000 17,000 17,000 252,500 252,500 252,500 252,500 $ 363,500 $ 363,500 $ 481,500 $ 363,500 $ 363,500 499,500 $ 517,500 Actual Cost Actual quantity x Actual price 61,000 X $ 5.10 $311,100 Direct materials price variance Direct materials quantity variance Direct materials variance $ 6,100 Actual quantity X 61,000 X $ Standard price 5.00 $305,000 $ 6,100 Unfavorable $ 5,000 Unfavorable 11,100 Unfavorable $ 5,000 Standard Cost Standard quantity Standard price 60,000 X $ 5.00 $300,000 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.) Actual Cost Actual hours X Actual rate 21,000 X $ 11.20 $ 235,200 Direct labor rate variance Direct labor efficiency variance Direct labor variance $ 4,200 Actual hours Standard rate 21,000 X $ 11.00 $231,000 $ 4,200 Unfavorable 66,000 Favorable $ 61,800 Favorable $ 66,000 Standard Cost Standard hours x Standard rate 27,000 X $ 11.00 $ 297,000