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\mathrm{.}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.

Compute the direct materlals varlance, Including its price and quantity varlances. $($Indlcate the effect of each varlance

by selecting favorable, unfavorable, or no varlance.$)$