Required ionation Problem 8-3A (Algo) Flexible overhead budget; 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 per unit for its product. Direct materials (3.0 pounds @ $6.00 per pound) Direct labor (1.8 hours @ $11.00 per hour) Overhead (1.8 hours $18.50 per hour) Standard cost per unit $ 18.00 19.80 33.30 $ 71.10 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 $ 15,000 75,000 15,000 30,000 Total variable overhead costs. 135,000 Fixed overhead costs Depreciation-Building 25,000 Depreciation-Machinery 71,000 17,000 251,500 364,500 Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 pounds @ $6.10 per pound) Direct labor (21,000 hours $11.20 per hour). Overhead costs Indirect materials $ 41.050 $ 277,550 235,200 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 (758 Capacity). Variable overhead costs Indirect materials Indirect labor Power Maintenance $ 15,000 75,000 15,000 30,000 Total variable overhead costs. 135,000 Fixed overhead costs Depreciation-Building 25,000 71,000 17,000 251,500 364,500 $ 499,500 Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 pounds $6.10 per pound) Direct labor (21,000 hours $11.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervisory salaries. Total costs $ 277,550 235,200 $ 41,050 176,650 17,250 34,500 25,000 95,850 15,300 251,500 657,100 $ 1,169,850 Problem 8-3A (Algo) Part 3 nces em 8-3A (Algo) Part 3 sute the direct labor variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting le, unfavorable, or no variance. Round "Rate per hour" answers to two decimal places.) Actual Cost Standard Cost