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[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 @ $6.00 per pound)	$ 24.00
Direct labor (1.8 hours @ $11.00 per hour)	19.80
Overhead (1.8 hours @ $18.50 per hour)	33.30
Standard cost per unit	$ 77.10

The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factorys capacity of 20,000 units per month. Following are the companys budgeted overhead costs per month at the 75% capacity level.

Overhead Budget (75% Capacity)
Variable overhead costs
Indirect materials	$ 30,000
Indirect labor	75,000
Power	30,000
Maintenance	30,000
Total variable overhead costs	165,000
Fixed overhead costs
DepreciationBuilding	23,000
DepreciationMachinery	70,000
Taxes and insurance	17,000
Supervisory salaries	224,500
Total fixed overhead costs	334,500
Total overhead costs	$ 499,500

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

Direct materials (61,000 pounds @ $6.10 per pound)		$ 372,100
Direct labor (22,000 hours @ $11.40 per hour)		250,800
Overhead costs
Indirect materials	$ 41,900
Indirect labor	176,450
Power	34,500
Maintenance	34,500
DepreciationBuilding	23,000
DepreciationMachinery	94,500
Taxes and insurance	15,300
Supervisory salaries	224,500	644,650
Total costs		$ 1,267,550

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 0 0 Standard Cost Actual hoursselected answer correct x Actual rateselected answer correct Actual hoursselected answer correct x Standard rateselected answer correct Standard hoursselected answer correct x Standard rateselected answer correct not attempted x not attempted not attempted x not attempted not attempted x not attempted $0 0 $0 Direct labor rate varianceselected answer correct $0 Unfavorableselected answer correct Direct labor efficiency varianceselected answer correct 0 Favorableselected answer correct Direct materials price varianceselected answer incorrect not attempted Favorableselected answer correct

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