Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $6.00 per pound) Direct labor (2.0 hours @ $13.00 per hour) Overhead (2.0 hours @ $18.50 per hour) Standard cost per unit $ 24.00 26.00 37.00 $ 87.00 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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 Indirect labor Power $ 15,000 75,000 15,000 Maintenance 45,000 Total variable overhead costs 150,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery 23,000 70,000 Taxes and insurance Supervisory salaries 17,000 295,000 405,000 Total fixed overhead costs Total overhead costs $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 pounds @ $6.20 per pound) Direct labor (21,000 hours @ $13.20 per hour) Overhead costs $ 378,200 277,200 4 ces Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs. $ 41,300 176,500 17,250 51,750 23,000 94,500 15,300 295,000 714,600 $ 1,370,000 olem 8-3A (Algo) Part 2 mpute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by ting favorable, unfavorable, or no variance.) Actual Cost