Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds $6.00 per pound) Direct labor (1.9 hours $11.00 per hour) Overhead (1.9 hours $18.50 per hour) Standard cost per unit $ 18.00 20.90 35.15 $ 74.05 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 $ 15,000 75,000 Pover 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building 23,000 Depreciation-Machinery 72,000 Taxes and insurance 16,000 Supervisory salaries 281,250 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. Direct materials (46,500 pounds $6.20 per pound). Direct labor (20,000 hours $11.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building. Depreciation-Machinery Taxes and insurance. Supervisory salaries Total costs $ 41,750 176,200 17,250 $288,300 224,000 34,500 23,000 97,200 14,400 281,2501 685,550 $ 1,197,850 2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)