Antuan Company set the following standard costs for one unit of its product. $20.00 Direct materials (4.0 Ibs. @ $5.00 per Ib.) Direct labor (1.9 hrs. @ $11.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) 20.90 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 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 (754 Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 30,000 $135,000 Repairs and maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead costs 23,000 72,000 18,000 279, 250 392, 250 $527, 250 Total overhead costs The company incurred the following actual costs when It operated at 75% of capacity in October. Direct materials (61,500 Ibs. @ $5.20 per lb.) $ Direct labor (23,000 hrs. @ $11.40 per hr.) 319,800 262,200 Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision $ 41,600 176,000 17, 250 34,500 23,000 97,200 16, 200 279, 250 685,000 Total costs $1,267,000 3. Compute the direct materials cost varlance, including its price and quantity variances. (Indicate the effect of each varlance by selecting for favorable, unfavorable, and No varlance.) Actual Cost Standard Cost Actual quantity Actual price Actual quantity Standard price Standard quantity Standard price $ 0 $ 0 Direct materials price variance $ 0 Direct materials quantity variance 0 Total direct materials variance