Required information Problem 21-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, P4 The following information applies to the questions displayed below.) Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 lbs. @ $6.00 per Ib.) Direct labor (1.6 hrs. $12.00 per hr.) Overhead (1.6 hrs. @ $18.50 per hr.) Total standard cost $24.00 19.20 29.60 $72.80 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 Budget 25 Capacity Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $135,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 71,000 Taxes and insurance 17,000 Supervision 197,000 Total fixed overhead costs 309,000 Total overhead costs $444,000 The company incurred the following actual costs when it operated at 75% of capacity in October. The company incurred the following actual costs when it operated at 75% of capacity in October $ 372,100 270,600 Direet materials (61,000 Ibe. $6.10 per lb.) Direct labor (22.000 hrs. $12.30 per hr.) Overhead costs Iodirect materials Indirect labor Power Bonand maintenance DAPERCHE- Dding Depensationachiy Tandtrance vuston TOE TE $ 41,400 176,200 17,250 34,500 24,000 95,850 15,300 197,000 601,500 $2,244,200 Problem 21-3A Part 3 3. Compute the direct materials cost variance, including its price and quantity variances (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Actual Cost Standard Cost