Required information (The following information applies to the questions displayed below.) Antuan Company set the following standard costs for one unit of its product. $12.00 22.00 Direct materials (3.0 Ibs. @ $4.00 per Ib.) Direct labor (2.0 hrs. @ $11.00 per hr.) Overhead (2.0 hrs. @ $18.50 per hr.) Total standard cost 37.00 $71.00 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. $ 15,000 75,000 15,000 30,000 $135,000 Required information Indirect materials Indirect labor Power Repairs and maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead costs Total overhead costs 25,000 72,000 16,000 307,000 420,000 $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 188,600 246,400 Direct materials (46,000 Ibs. $4.10 per lb.) Direct labor (22,000 hrs. @ $11.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 41,050 176,200 17,250 34,500 25,000 97,200 14,400 307,000 712,600 $1,147,600 3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.) Actual Cost Standard Cost