The standard overhead rate $($ $$18\mathrm{.}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.

The company incurred the following actual costs when it operated at $75\%$ of capacity in October.

Compute the direct labor variance, including its rate and efficiency variances.

ote: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to

o decimal places.