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 (1.9 hours @ $10.00 per hour). Overhead (1.9 hours @ $18.50 per hour) Standard cost per unit $ 20.00 19.00 35.15 $ 74.15 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 Indirect labor Power $ 15,000 75,000 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs 24,000 72,000 17,000 279,250 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs 392,250 $ 527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,500 pounds @ $5.20 per pound) Direct labor (19,000 hours @ $10.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,650 176,050 17,250 34,500 24,000 97,200 15,300 279,250 $ 319,800 193,800 685,200 $ 1,198,800 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 0 $ 0 EA $ 0 0 $ 0 Standard Cost