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Antuan Company set the following standard costs per unit for its product.

Direct materials (4.0 pounds @ $4.00 per pound)$ 16.00Direct labor (2.0 hours @ $11.00 per hour)22.00Overhead (2.0 hours @ $18.50 per hour)37.00Standard cost per unit$ 75.00

The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factorys capacity of 20,000 units per month. Following are the companys budgeted overhead costs per month at the 75% capacity level.

Overhead Budget (75% Capacity)Variable overhead costs Indirect materials$ 15,000Indirect labor75,000Power15,000Maintenance30,000Total variable overhead costs135,000Fixed overhead costs DepreciationBuilding24,000DepreciationMachinery71,000Taxes and insurance16,000Supervisory salaries309,000Total fixed overhead costs420,000Total overhead costs$ 555,000

The company incurred the following actual costs when it operated at 75% of capacity in October.

Direct materials (61,000 pounds @ $4.20 per pound) $ 256,200Direct labor (22,000 hours @ $11.30 per hour) 248,600Overhead costs Indirect materials$ 41,050 Indirect labor177,000 Power17,250 Maintenance34,500 DepreciationBuilding24,000 DepreciationMachinery95,850 Taxes and insurance14,400 Supervisory salaries309,000713,050Total costs $ 1,217,850

3. Compute the direct labor variance, including its rate and efficiency variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to two decimal places. 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