Antuan Company set the following standard costs per unit for its product. Direct materials (6 pounds @ $5 per pound) Direct labor (2 hours $17 per hour) Overhead (2 hours $18.50 per hour) Standard cost per unit $ 38 34 37 $101 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 $ 45,000 180,000 Power 45,000 Maintenance 98,000 Total variable overhead costs 368,000 Fixed overhead costs 24,000 80,000 12,000 Supervisory salaries 79,000 195,000 $ 555,000 Depreciation Building Depreciation-Machinery Taxes and insurance Total fixed overhead costs Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (91,088 pounds $5.10 per pound) Direct labor (30,500 hours @ $17.25 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 464,100 526,125 $44,250 177,750 43,000 95,000 24,000 75,000 11,500 89,000 568,500 $1,558,725 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. Actual Cost 0 $ 0 $ Standard Cost