Compute the direct materials cost variance

Question

Antuan Company set the following standard costs for one unit of its product.   

Direct materials ((3.0 Ibs. @ $4.0 per Ib.)	$	12.00
Direct labor (1.8 hrs. @ $11.0 per hr.)		19.80
Overhead (1.8 hrs. @ $18.50 per hr.)		33.30
Total standard cost	$	65.10

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% 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
Depreciation-building		25,000
Depreciation-machinery		71,000
Taxes and insurance		17,000
Supervision		251,500
Total fixed overhead costs					364,500
Total overhead costs				$	499,500

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

Direct materials (45,500 Ibs. @ $4.20 per lb.)				$	191,100
Direct labor (30,000 hrs. @ $11.30 per hr.)					339,000
Overhead costs
Indirect materials	$	45,750
Indirect labor		177,750
Power		17,250
Repairs and maintenance		34,500
Depreciation-building		25,000
Depreciation-machinery		95,850
Taxes and insurance		15,300
Supervision		251,500			662,900
Total costs				$	1,193,000
1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed. Compute the direct materials cost variance, including its price and quantity variances. (Round actual price to 2 decimal places.) . Compute the direct labor cost variance, including its rate and efficiency variances.(Round actual rate to 2 decimal places.)