Required information [The following information applies to the questions displayed below.) Antuan Company set the following standard costs per unit for its product. $ 20.00 24.70 Direct materials (4.0 pounds @ $5.00 per pound) Direct labor (1.9 hours @ $13.00 per hour) Overhead (1.9 hours @ $18.50 per hour) Standard cost per unit 35.15 $ 79.85 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 135,000 costs Fixed overhead costs Depreciation-Building 25,000 Depreciation Machinery 70,000 Taxes and insurance 18,000 Supervisory salaries 279, 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. $ 311, 100 303,600 Direct materials (61,000 pounds @ $5.10 per pound) Direct labor (23,000 hours $13.20 per hour) Overhead costs Indirect materials 41,600 Indirect labor 176,200 Power 17,250 Maintenance 34,500 Depreciation-Building 25,000 Depreciation-Machinery 94,500 Taxes and insurance Supervisory salaries 279, 250 Total costs 16, 200 684,500 $ 1,299,200 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