Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $5.00 per pound) $20.00 Direct labor (1.9 hours @ $14.00 per hour) 26.60 35.15 Overhead (1.9 hours @ $18.50 per hour) Standard cost per unit $ 81.75 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 $ 15,000 Indirect labor 75,000 Power 15,000 Maintenance 30,000 135,000 Total variable overhead costs Fixed overhead costs 24,000 71,000 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries. 17,000 280,250 Total fixed overhead costs 392,250 Total overhead costs. $ 527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 pounds @ $5.20 per pound) Direct labor (22,000 hours @ $14.20 per hour) $ 317,200 312,400 Overhead costs $ 41,500 Indirect materials Indirect labor 176,600 Power 17,250 Maintenance 34,500 Depreciation-Building 24,000 95,850 Depreciation-Machinery Taxes and insurance Supervisory salaries 15,300 280, 250 685,250 Total costs $ 1,314,850 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.) Actual Cost Standar