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 @ $5.00 per pound) Direct labor (2.0 hours @ $14.00 per hour) Overhead (2.0 hours @ $18.50 per hour) Standard cost per unit $ 15.00 28.00 37.00 $ 80.00 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 24,000 71,000 17,000 308,000 420,000 $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 234,600 300,300 Direct materials (46,000 pounds @ $5.10 per pound) Direct labor (21,000 hours @ $14.30 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,600 176,200 17,250 34,500 24,000 95,850 15,300 308,000 712,700 $ 1,247,600 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