Antuan Company set the following standard costs per unit for its product. Direct materials (6 pounds @ $5 per pound) $ 30 Direct labor (2 hours @ $17 per hour) 34 Overhead (2 hours @ $18.50 per hour) 37 Standard cost per unit $ 101 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 $ 45,000 Indirect labor 180,000 Power 45,000 Maintenance 90,000 Total variable overhead costs 360,000 Fixed overhead costs DepreciationBuilding 24,000 DepreciationMachinery 80,000 Taxes and insurance 12,000 Supervisory salaries 79,000 Total fixed overhead costs 195,000 Total overhead costs $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (91,000 pounds @ $5.10 per pound) $ 464,100 Direct labor (30,500 hours @ $17.25 per hour) 526,125 Overhead costs Indirect materials $ 44,250 Indirect labor 177,750 Power 43,000 Maintenance 96,000 DepreciationBuilding 24,000 DepreciationMachinery 75,000 Taxes and insurance 11,500 Supervisory salaries 89,000 560,500 Total costs $ 1,550,725 Problem 21-3A (Static) Part 2 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.)