Antuan Company set the following standard costs for one unit of its product.

Direct materials (3.0 Ibs. @ $5.00 per Ib.)$15.00Direct labor (1.9 hrs. @ $14.00 per hr.)26.60Overhead (1.9 hrs. @ $18.50 per hr.)35.15Total standard cost$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 costsIndirect materials$15,000Indirect labor75,000Power15,000

Repairs and maintenance30,000Total variable overhead costs$135,000Fixed overhead costsDepreciationBuilding23,000DepreciationMachinery72,000Taxes and insurance17,000Supervision280,250Total fixed overhead costs392,250Total overhead costs$527,250

The company incurred the following actual costs when it operated at 75% of capacity in October.

Direct materials (45,500 Ibs. @ $5.20 per lb.)$236,600Direct labor (24,000 hrs. @ $14.30 per hr.)343,200Overhead costsIndirect materials$41,200Indirect labor176,250Power17,250Repairs and maintenance34,500DepreciationBuilding23,000DepreciationMachinery97,200Taxes and insurance15,300Supervision280,250684,950Total costs$1,264,750

rev: 03_28_2018_QC_CS-122864

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

AQ = Actual Quantity

SQ = Standard Quantity

AP = Actual Price

SP = Standard Price