Required information [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 Ibs. @ $6.00 per Ib.) Direct labor (1.9 hrs. @ $10.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) Total standard cost $18.00 19.00 35.15 $72.15 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 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 25,000 Depreciation Machinery 71,000 Taxes and insurance 18,000 Supervision 278, 250 Total fixed overhead costs Total overhead costs $ 135,000 392,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October $ 285,200 206,000 Direct materials (46,000 Ibs. @ $6.20 per lb.) Direct labor (20,000 hrs. @ $10.30 per hr.) Overhead costs Indirect materials Indirect labor Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs Power $ 41,700 176,600 17,250 34,500 25,000 95,850 16, 200 278, 250 685, 350 $1,176,550 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