Antuan Company set the following standard costs for one unit of its product Direct materials (3.2 Ibs. @ $5.00 per Ib.) Direct labor (1.9 hrs. @ $14.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) Total standard cost $15.00 26.50 35.15 $76.75 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. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 45,eee Total variable overhead costs Fixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 71,000 Taxes and insurance 16,830 Supervision 266,250 Total fixed overhead costs Total overhead costs $150,000 377,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October $ 234,600 300, 300 Direct materials (46, epe Ibs. @ $5.18 per lb. ) Direct labor (21,000 hrs. $14.30 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 41,900 176,850 17,250 51,75e 24.000 95,850 14,400 266,250 688 250 $1,223,150 3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and No variance.) Actual Cost Standard Cost O $ 0 S 0 5 4. Compute the direct labor cost variance, including its rate and efficiency variances (Indicate the effect of each variance by selecting for favorable, unfavorable, and No verlance. Round "Rate per hour answers to two decimal places.) Actual Cost Standard Cost $ 0 $ 0 10 10