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[The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (3.2

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[The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (3.2 Ibs. @ $4.00 per Ib.) Direct labor (1.9 hrs. @ $13.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) Total standard cost $12.89 24.70 35.15 $71.85 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. $135,000 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 16,000 Supervision 280,250 Total fixed overhead costs Total overhead costs 392,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October $ 188,600 264,000 Direct materials (46,000 Ibs. @ $4.10 per lb.) Direct labor (20,000 hrs. @ $13.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 41,550 176,650 17,250 34,500 25,000 95,850 14,400 280, 250 685,450 $1,138,050 Required information Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Flexible Budget for Variable Amount Total Fixed 65% of 75% of 85% of per Unit Cost capacity capacity capacity Sales (in units) Variable overhead costs Indirect labor Indirect materials Repairs and maintenance Power 0.00 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total overhead costs Problem 23-3A Part 3 3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Problem 23-3A Part 4 4. Compute the direct labor cost variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance. Round "Rate per hour answers to two decimal places.) Actual Cost Required information of oth Ended October Expected production volume Production level achieved Volume variance Flexible Budget Actual Results Variances Fav. 7 Unfav. Variable costs Fixed costs Total overhead costs

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