21.6

Antuan Company set the following standard costs for one unit of Its product. 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% capacity level. The company Incurred the following actual costs when It operated at 75% of capacity in October. 3. Compute the direct materlals cost varlance, Including its price and quantity varlances. (Indlcate the effect of each varlance by selecting for favorable, unfavorable, and No varlance.)