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 (1.6 hours @ $13.00 per hour) Overhead (1.6 hours @ $18.50 per hour) Standard cost per unit $ 20.00 20.80 29.60 $ 70.40 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 $ 15,000 75,000 15,000 30,000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs 25,000 70,000 18,000 196,000 309,000 $ 444,000 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 $13.30 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,750 176,650 17,250 34,500 25,000 94,500 16,200 196,000 $ 317,200 279,300 601,850 $ 1,198,350 2. Compute the direct materials variance, including its price and quantity variances. (Indicate the effect of favorable, unfavorable, or no variance.) Actual Cost Actual quantity Actual price 61,000 X $ 5.20 $317,200 Direct materials price variance Direct materials quantity variance Total variable overhead cost variance $ 12,200 Actual quantity Standard price 61,000 X $ 5.00 $305,000 12,200 Unfavorable 7,500 Unfavorable $ 19,700 Unfavorable 00 $ 7,500 Standard quantity Standard Cost X 59,500 X $297,500 Standard price 5.00