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 (1.8 hours @ $13.00 per hour)	23.40
Overhead (1.8 hours @ $18.50 per hour)	33.30
Standard cost per unit	$ 76.70

The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factorys capacity of 20,000 units per month. Following are the companys 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
Total variable overhead costs	135,000
Fixed overhead costs
DepreciationBuilding	25,000
DepreciationMachinery	71,000
Taxes and insurance	18,000
Supervisory salaries	250,500
Total fixed overhead costs	364,500
Total overhead costs	$ 499,500

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)		$ 317,200
Direct labor (21,000 hours @ $13.40 per hour)		281,400
Overhead costs
Indirect materials	$ 41,150
Indirect labor	177,000
Power	17,250
Maintenance	34,500
DepreciationBuilding	25,000
DepreciationMachinery	95,850
Taxes and insurance	16,200
Supervisory salaries	250,500	657,450
Total costs		$ 1,256,050

2. Compute the direct materials variance, including its price and quantity variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance