Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $4.00 per pound) Direct labor (1.7 hours @ $11.00 per hour) Overhead (1.7 hours @ $18.50 per hour) Standard cost per unit $ 12.00 18.70 31.45 $ 62.15 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 Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs $ 15,000 75,000 15,000 30,000 135,000 24,000 70,000 17,000 225,750 336,750 $ 471,750 The company Incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 pounds @ $4.10 per pound) Direct labor (19,000 hours @ $11.10 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,150 176,900 17,250 34,500 24,000 94,500 15,300 225,750 $ 186,550 210,900 629,350 $ 1,026,800 2. Compute the direct materials varlance, including its price and quantity variances. (Indicate the effect of each varlance by selecting favorable, unfavorable, or no varlance.) Actual Cost 0 69 0 LA 0 0 $ SA 0 Standard Cost