Antuan Company set the following standard costs for one unit of its product. Direct materials (5.0 Ibs. @ $4.00 per Ib.) Direct labor (1.8 hrs. $12.00 per hr.) Overhead (1.8 hrs. $18.50 per hr.) Total standard cost $20.00 21.60 33.30 $74.90 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 Indirect labor $ 15,000 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $135,000 Fixed overhead costs Depreciation-Building 23,000 Depreciation-Machinery Taxes and insurance 70,000 17,000 Supervision 254,500 Total fixed overhead costs Total overhead costs 364,500 $499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (76,500 Ibs. @ $4.20 per lb.) Direct labor (23,000 hrs. @ $12.10 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 321,300 278,300 $ 41,350 176,800 17,250 34,500 23,000 94,500 15,300 254,500 657,200 $1,256,800 3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Actual Cost 0 $ $ 0 0 0 Standard Cost