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 (5.0 pounds @ $6.00 per pound) Direct labor (2.0 hours @ $11.00 per hour) Overhead (2.0 hours @ $18.50 per hour) Standard cost per unit $ 30.00 22.00 37.00 $ 89.00 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. 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 71,000 18,000 307,000 420,000 $ 555,000 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. Direct materials (76,000 pounds @ $6.10 per pound) Direct labor (20,000 hours @ $11.40 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 463,600 228,000 $ 41,850 176,550 17,250 34,500 24,000 95,850 16,200 307,000 713,200 $ 1,404,800 2. Compute the direct materials varlance, including its price and quantity variances. (Indicate the effect of each varlance by selecting favorable, unfavorable, or no varlance.)