Antuan Company set the following standard costs for one unit of its product. Direct materials (5.0 Ibs. @ $4.00 per Ib.) $ 20.00 Direct labor (1.9 hrs. @ $11.00 per hr.) 20.90 Overhead (1.9 hrs. @ $18.50 per hr.) 35.15 Total standard cost $ 76.05 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factorys capacity of 20,000 units per month. Following are the companys 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 30,000 Total variable overhead costs $ 135,000 Fixed overhead costs DepreciationBuilding 24,000 DepreciationMachinery 71,000 Taxes and insurance 17,000 Supervision 280,250 Total fixed overhead costs 392,250 Total overhead costs $ 527,250 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.) $ 321,300 Direct labor (20,000 hrs. @ $11.10 per hr.) 222,000 Overhead costs Indirect materials $ 41,800 Indirect labor 176,350 Power 17,250 Repairs and maintenance 34,500 DepreciationBuilding 24,000 DepreciationMachinery 95,850 Taxes and insurance 15,300 Supervision 280,250 685,300 Total costs $ 1,228,600 rev: 03_28_2018_QC_CS-122864

3. Compute the direct materials cost variance, including its price and quantity variances.