Required information [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. \begin{tabular}{lr} Direct materials (3.0 pounds 0$6.00 per pound) & $18.00 \\ Direct labor ( 1.7 hours $12.00 per hour) & 20.40 \\ Overhead (1.7 hours @ $18.50 per hour) & 31.45 \\ Standard cost per unit & $69.85 \\ \hline \end{tabular} 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. \begin{tabular}{lr} \multicolumn{2}{c}{ Overhead Budget (75\% Capacity) } \\ Variable overhead costs \\ Indirect materials & $15,000 \\ Indirect labor & 75,000 \\ Power & 15,000 \\ Maintenance & 30,000 \\ \hline Total variable overhead costs & 135,000 \\ Fixed overhead costs & 24,000 \\ Depreciation-Building & 72,000 \\ Depreciation-Machinery & 17,000 \\ Taxes and insurance & 223,750 \\ Supervisory salaries & 336,750 \\ \hline Total fixed overhead costs & $471,750 \\ \hline Total overhead costs & \end{tabular} The company incurred the following actual costs when it operated at 75% of capacity in October. \begin{tabular}{lrl} Direct materials (46,500 pounds @ \$6.10 per pound) & & $283,650 \\ Direct labor (20,000 hours @ \$12.30 per hour) & 246,000 \\ Overhead costs & & \\ Indirect materials & $41,050 & \\ Indirect labor & 176,700 & \\ Power & 17,250 & \\ Maintenance & 34,500 & \\ Depreciation-Building & 24,000 & \\ Depreciation-Machinery & 97,200 & \\ Taxes and insurance & 15,300 & \\ Supervisory salaries & 223,750 & 629,750 \\ Total costs & & $1,159,400 \\ \hline \hline \end{tabular} Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%,75%, and 85% capacity levels. 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. 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. verh