Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. @ $4.00 per Ib.) Direct labor (1.9 hrs. @ $13.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) Total standard cost $12.00 24.70 35.15 $71.85 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 30,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 23,000 DepreciationMachinery 71,000 Taxes and insurance 18,000 Supervision 280, 250 Total fixed overhead costs $135,000 392,250 280, 250 Supervision Total fixed overhead costs Total overhead costs 392,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 191,100 277,200 Direct materials (45,500 Ibs. @ $4.20 per lb.) Direct labor (21,000 hrs. @ $13.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance DepreciationBuilding DepreciationMachinery Taxes and insurance Supervision Total costs $ 41,450 176,300 17,250 34,500 23,000 95,850 16,200 280, 250 684,800 $1,153,100 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 Standard Cost Actual quantity Actual price Actual quantity Standard price Standard quantity Standard pr 0 $ 0 $ O 0 Unfavorable Direct materials price variance Direct materials quantity variance Total direct materials variance Unfavorable Unfavorable