Required information Skip to question [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $5.00 per pound) $ 20.00 Direct labor (1.6 hours @ $12.00 per hour) 19.20 Overhead (1.6 hours @ $18.50 per hour) 29.60 Standard cost per unit $ 68.80 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of

Required information [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. 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. The company incurred the following actual costs when it operated at 75% of capacity in October. Direct naterials (61,0e0 pounds e $5.20 per pound) Direct labor (22, e0e hours e $12.40 per hour) 317,200272,800 Overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. 2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)