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 (3.0 pounds @ $6.00 per pound) Direct labor (1.7 hours @ $11.00 per hour) Overhead (1.7 hours @ $18.50 per hour) Standard cost per unit $ 18.00 18.70 31.45 $ 68.15 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. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 70,000 Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. 16,000 226,750 336,750 $ 471,750 Direct materials (45,500 pounds @ $6.10 per pound) Direct labor (20,000 hours @ $11.30 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 277,550 226,000 $ 41,250 176,050 17,250 34,500 24,000 94,500 14,400 226,750 628,700 $ 1,132,250 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