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 @ $11.00 per hour) Overhead (1.9 hours @ $18.50 per hour) Standard cost per unit $ 20.00 20.90 35.15 $ 76.05 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 Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs $ 15,000 75,000 15,000 45,000 150,000 24,000 72,000 16,000 265,250 377,250 $ 527,250 The company Incurred the following actual costs when It operated at 75% of capacity in October. Direct materials (61,000 pounds @ $5.20 per pound) Direct labor (21,000 hours @ $11.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 317,200 235,200 $ 41,300 176,400 17,250 51,750 24,000 97,200 14,400 265,250 687,550 $ 1,239,950 2. Compute the direct materials varlance, Including Its price and quantity variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost Standard Cost