Compute the direct materials cost variance, including its price and quantity variances.

Antuan Company set the following standard costs for one unit of its product. Direct materials (5.0 Ibs. $4.00 per Ib.) Direct labor (1.9 hrs. $12.00 per hr.) Overhead (1.9 hrs. $18.50 per hr.) $20.00 22.80 35.15 $77.95 Total standard cost The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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 Bud get (75% Capacity) Variable overhead costs $ 15,000 Indirect materials Indirect labor 75,000 Power 15,000 Repairs and maintenance Total variable overhead costs 30,000 $135,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery 24,000 71,000 16,000 Taxes and insurance Supervision 281,250 Total fixed overhead costs 392,250 $527,250 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (76,000 Ibs. $4.20 per lb.) Direct labor (22,000 hrs. $12.10 per hr.) 319,200 266,200 Overhead costs $ 41,950 176,750 17,250 34,500 24,000 Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance 95,850 14,400 Supervision 281,250 685,950 $1,271,350 Total costs 1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Flexible Budget for 65% of 85% of Variable Amount Total Fixed 75% of per Unit Cost capacity capacity capacity Sales (in units) Variable overhead costs 0.00 C Fixed overhead costs 0 0 C Total overhead costs AQ= Actual Quantity SQ Standard Quantity AP Actual Price SP = Standard Price Actual Cost Standard Cost 0 $ 0 0