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 (4.6 pounds @ $5.80 per pound) Direct labor (1.8 hours $13.00 per hour) Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit $ 20.00 23.40 33.30 $ 76.70 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 90,000 15,000 30,000 150,000 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 72,000 17,000 236,500 349,500 $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 311,100 252,700 Direct materials (61,808 pounds @ $5.10 per pound) Direct labor (19,000 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, 150 176,25 17,250 34,500 24,000 97,200 15,300 236,500 642,150 $ 1,205,950 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