Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $4.00 per pound) Direct labor (1.9 hours @ $10.00 per hour) Overhead (1.9 hours $18.50 per hour) Standard cost per unit $ 16.00 19.00 35.15 $ 70.15 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 $ 15,000 75,000 15,000 30,000 135,000 25,000 72,000 16,000 279,250 392,250 $527,250 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,000 pounds @ $4.10 per pound) Direct labor (22,000 hours @$10.30 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 250,100 226,600 $ 41,150 176,650 17,250 34,500 25,000 97,200 14,4001 279,250 685,400 $1,162,100 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.) Actual Cost