Required Information Problem 8-3A (Static) Flexible overhead budget; 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 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) 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 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 $ 45,909 Indirect labor 180, 808 Power 45, 809 Maintenance 90, 290 Total variable overhead costs 860, 808 Fixed overhead costs Depreciation-Building 24, 890 Depreciation-Machinery 20, ege Taxes and insurance 12, ege Supervisory salaries 79, 208 Total fixed overhead costs 195, ege Total overhead costs $ 555, 090 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (91, 080 pounds @ $5.10 per pound) $ 464, 108 Direct labor (30,508 hours @ $17.25 per hour) 526, 125 overhead costs Indirect materials $ 44,258 Indirect labor 177,750 Power 43, 290 Maintenance 95, 208 Depreciation-Building 24, egg Depreciation-Machinery 75, 206 Taxes and insurance 11, 508 Supervisory salaries 89, 890 560, 509 Total costs $ 1, 550, 725 Problem 8-3A (Static) Part 2 2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each varlance by selecting favorable, unfavorable, or no varlance.)Problem 8-3A (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 varlance.) Actual Cost Standard Cost