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Problem $8-3$A $($Algo$)$ Flexible overhead budget; materials, labor, and overhead variances; and overhead variance report LO P$1,$ P$2,$ P$3,$ P$4$

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

Direct materials $(4\mathrm{.}0$ pounds @ $$4\mathrm{.}00$ per pound$)$ $ $16\mathrm{.}00$

Direct labor $(1\mathrm{.}7$ hours @ $$10\mathrm{.}00$ per hour$)17\mathrm{.}00$

Overhead $(1\mathrm{.}7$ hours @ $$18\mathrm{.}50$ per hour$)31\mathrm{.}45$

Standard cost per unit $ $64\mathrm{.}45$

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.

Overhead Budget $(75\%$ Capacity$)$

Variable overhead costs

Indirect materials $ $15,000$

Indirect labor $90,000$

Power $15,000$

Maintenance $30,000$

Total variable overhead costs $150,000$

Fixed overhead costs

Depreciation$$Building $23,000$

Depreciation$$Machinery $70,000$

Taxes and insurance $17,000$

Supervisory salaries $211,750$

Total fixed overhead costs $321,750$

Total overhead costs $ $471,750$

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

Direct materials $(60,500$ pounds @ $$4\mathrm{.}20$ per pound$)$ $ $254,100$

Direct labor $(22,000$ hours @ $$10\mathrm{.}30$ per hour$)226,600$

Overhead costs

Indirect materials $ $41,050$

Indirect labor $176,350$

Power $17,250$

Maintenance $34,500$

Depreciation$$Building $23,000$

Depreciation$$Machinery $94,500$

Taxes and insurance $15,300$

Supervisory salaries $211,750613,700$

Total costs $ $1,094,400$

Problem $8-3$A $($Algo$)$ Part $3$

$3.$ Compute the direct labor variance, including its rate and efficiency variances.

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