Required information [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $5.00 per Ib. ) Direct labor (1.9 hrs. @ $14.00 per hr. ) $20.00 Overhead (1.9 hrs. @ $18.50 per hr. ) 26.60 35.15 Total standard cost $81.75 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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 Repairs and maintenance 30,000 Total variable overhead rosts $135 AAA U w3. Compute the direct materials cost variance, including its price and quantity variances. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Actual Cost Standard Cost 0 S 0 $ 0 O O w searchTotal . variable overhead costs Fixed overhead costs $135, 000 Depreciation-Building Depreciation-Machinery 24, 000 Taxes and insurance 70,000 Supervision 16,000 282, 250 Total fixed overhead costs 392, 250 Total overhead costs $527, 250 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61, 000 Ibs. @ $5.10 per 1b. ) $ 311, 100 Direct labor (23, 000 hrs. @ $14.20 per hr. ) 326, 600 Overhead costs Indirect materials $ 41, 450 Indirect labor 176, 150 Power 17, 250 Repairs and maintenance 34, 500 Depreciation-Building 24, 000 Depreciation-Machinery 94, 500 Taxes and insurance 14, 400 Supervision 282, 250 684, 500 Total costs $1, 322, 200 w