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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 (3.0 Ibs. @ $6.00 per Ib.)	$	18.00
Direct labor (2.0 hrs. @ $10.00 per hr.)		20.00
Overhead (2.0 hrs. @ $18.50 per hr.)		37.00
Total standard cost	$	75.00

The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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	$	15,000
Indirect labor		75,000
Power		15,000
Repairs and maintenance		30,000
Total variable overhead costs				$	135,000
Fixed overhead costs
DepreciationBuilding		24,000
DepreciationMachinery		72,000
Taxes and insurance		17,000
Supervision		307,000
Total fixed overhead costs					420,000
Total overhead costs				$	555,000

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

Direct materials (45,500 Ibs. @ $6.20 per lb.)				$	282,100
Direct labor (21,000 hrs. @ $10.20 per hr.)					214,200
Overhead costs
Indirect materials	$	41,950
Indirect labor		176,850
Power		17,250
Repairs and maintenance		34,500
DepreciationBuilding		24,000
DepreciationMachinery		97,200
Taxes and insurance		15,300
Supervision		307,000			714,050
Total costs				$	1,210,350

rev: 03_28_2018_QC_CS-122864

3. Compute the direct materials cost variance, including its price and quantity variances. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price

4. Compute the direct labor cost variance, including its rate and efficiency variances. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate

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