Problem 08-3A Flexible budget preparation; computation ofmaterials, labor, and overhead variances; and overhead variancereport LO P1, P2, P3, P4 Skip to question [The followinginformation applies to the questions displayed below.] AntuanCompany set the following standard costs for one unit of itsproduct. Direct materials (4.0 Ibs. @ $6.00 per Ib.) $ 24.00 Directlabor (1.9 hrs. @ $13.00 per hr.) 24.70 Overhead (1.9 hrs. @ $18.50per hr.) 35.15 Total standard cost $ 83.85 The predeterminedoverhead rate ($18.50 per direct labor hour) is based on anexpected volume of 75% of the factory’s capacity of 20,000 unitsper month. Following are the company’s budgeted overhead costs permonth at the 75% capacity level. Overhead Budget (75% Capacity)Variable overhead costs Indirect materials $ 15,000 Indirect labor90,000 Power 15,000 Repairs and maintenance 30,000 Total variableoverhead costs $ 150,000 Fixed overhead costs Depreciation—Building24,000 Depreciation—Machinery 72,000 Taxes and insurance 18,000Supervision 263,250 Total fixed overhead costs 377,250 Totaloverhead costs $ 527,250 The company incurred the following actualcosts when it operated at 75% of capacity in October. Directmaterials (61,000 Ibs. @ $6.20 per lb.) $ 378,200 Direct labor(22,000 hrs. @ $13.10 per hr.) 288,200 Overhead costs Indirectmaterials $ 41,050 Indirect labor 176,800 Power 17,250 Repairs andmaintenance 34,500 Depreciation—Building 24,000Depreciation—Machinery 97,200 Taxes and insurance 16,200Supervision 263,250 670,250 Total costs $ 1,336,650 rev:04_27_2020_QC_CS-209738 Problem 08-3A

Part 3 3. Compute the direct materials cost variance, includingits price and quantity variances. (Indicate the effect of eachvariance by selecting for favorable, unfavorable, and Novariance.)

Problem 08-3A Part 4

4. Compute the direct labor cost variance,including its rate and efficiency variances. (Indicate theeffect of each variance by selecting for favorable, unfavorable,and No variance. Round "Rate per hour" answers to two decimalplaces.