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

Direct materials (5.0 Ibs. @ $5.00 per Ib.)	$	25.00
Direct labor (1.7 hrs. @ $11.00 per hr.)		18.70
Overhead (1.7 hrs. @ $18.50 per hr.)		31.45
Total standard cost	$	75.15

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		23,000
DepreciationMachinery		71,000
Taxes and insurance		18,000
Supervision		224,750
Total fixed overhead costs					336,750
Total overhead costs				$	471,750

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

Direct materials (76,000 Ibs. @ $5.10 per lb.)				$	387,600
Direct labor (21,000 hrs. @ $11.30 per hr.)					237,300
Overhead costs
Indirect materials	$	41,250
Indirect labor		176,200
Power		17,250
Repairs and maintenance		34,500
DepreciationBuilding		23,000
DepreciationMachinery		95,850
Taxes and insurance		16,200
Supervision		224,750			629,000
Total costs				$	1,253,900
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