Required information [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) Direct labor (1.6 hours @ $10.00 per hour) Overhead (1.6 hours $18.50 per hour) Standard cost per unit $ 20.00 16.00 29.60 $ 65.60 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. $ 15,000 75,000 15,000 30,000 135,000 Overhead Budget (75% Capacity) Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs 25,000 70,000 17,000 197,000 309,000 $ 444,000 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 308,550 228,800 Direct materials (60,500 pounds @ $5.10 per pound) Direct labor (22,000 hours @ $10.40 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervisory salaries Total costs $ 41,750 176, 350 17,250 34,500 25,000 94,500 15,300 197,000 601,650 $ 1,139,000 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.) Actual Cost Standard Cost 0 $ 0 $ 0 $ 0 0 0