Required information [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. @ $4.00 per Ib.) $ 12.00 Direct labor (1.9 hrs. @ $14.00 per hr.) 26.60 Overhead (1.9 hrs. @ $18.50 per hr.) 35.15 Total standard cost $ 73.75 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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 $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $ 135,000 Fixed overhead costs DepreciationBuilding 23,000 DepreciationMachinery 72,000 Taxes and insurance 18,000 Supervision 279,250 Total fixed overhead costs 392,250 Total overhead costs $ 527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,000 Ibs. @ $4.20 per lb.) $ 193,200 Direct labor (23,000 hrs. @ $14.30 per hr.) 328,900 Overhead costs Indirect materials $ 41,050 Indirect labor 176,350 Power 17,250 Repairs and maintenance 34,500 DepreciationBuilding 23,000 DepreciationMachinery 97,200 Taxes and insurance 16,200 Supervision 279,250 684,800 Total costs $ 1,206,900 rev: 03_28_2018_QC_CS-122864 3. Compute the direct materials cost variance, including its price and quantity variances. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price