Antuan Company setthe following standard costs per unit for its product. Direct materials [4.6 pounds @ $5.66 per pound) $ 26.66 Direct labor (1.? hours @ $13.66 per hour) 22.16 Overhead {1.? hours @ $13.56 per hour) 31.45 Standard cost per unit $ ?3.55 The standard overhead rate ($18.50 per direct labor hour} is based on a predicted activity level of 75% ofthe factorv's capacity of 20,600 units per month. Following are the company's budgeted overhead costs per month at the 75% capacity level. Overhead Budget {?5% Capacity) Variable overhead costs Indirect materials $ 15,666 Indirect labor 25,666 Power 15,666 Maintenance 36,666 Total variable overhead costs 135,666 Fixed overhead costs DepreciationBuilding 24,666 DepreciationMachinery ?2,666 Taxes and insurance 16,666 Supervisory salaries 224,?56 Total fixed overhead costs 335:759 Total overhead costs $ 421,?56 The company incurred the following actual costs when it operated at ?5% ofcapacitv in October. Direct materials [66,566 pounds @ $5.26 per pound} $ 314,666 Direct labor (26,666 hours @ $13.16 per hour) 262,666 Overhead costs Indirect materials 5 41,566 Indirect labor 1?6,656 Power 1?,256 Maintenance 34,566 DepreciationBuilding 24,666 DepreciationMachinery 9?,266 Taxes and insurance 14,466 Supervisory salaries 2245759 5355459 Total costs $ 1,26?,656 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 Standard Cost Actual quantity X Actual price Actual quantity X Standard price Standard quantity X Standard price 60,500 X $ 5.20 60,500 X $ 5.00 X $314,600 $302,500 $ 12, 100 0 Direct materials price variance 12, 100 Direct materials quantity variance 0 Direct materials variance