2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Standard Required information [The following information applies to the questions displayed below.) Antuan Company set the following standard costs per unit for its product. Direct materials (4.6 pounds @ $5.00 per pound) Direct labor (1.9 hours @ $14.00 per hour) Overhead (1.9 hours @ $18.50 per hour) Standard cost per unit $ 20.00 26.60 35.15 $ 81.75 The standard overhead rate ($18.50 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. $ 15,000 75,000 15,000 30,000 135,000 Overhead Budget (75% Capacity) Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs 24,000 71,000 17,000 280, 250 392,250 $ 527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 317,200 312,400 Direct materials (61,000 pounds @ $5.20 per pound) Direct labor (22,000 hours @ $14.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,500 176,600 17,250 34,500 24,000 95,850 15,300 280, 250 685,250 $ 1,314,850