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 (3.0 Ibs. @ $4.00 per Ib.) Direct labor (1.9 hrs. @ $11.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) Total standard cost $12.09 20.98 35.15 $68.85 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% capacit level. $135,000 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 costs Fixed overhead costs Depreciation-Building 25,000 Depreciation Machinery 70,000 Taxes and insurance 17,800 Supervision 280, 250 Total fixed overhead costs Total overhead costs 392,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October $ 191,109 255,300 Direct materials (45,500 Ibs. @ $4.20 per lb.) Direct labor (23,800 hrs. @ $11.10 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 41,750 176,700 17,250 34,500 25,000 94,500 15,380 280,250 685,250 $1,131,650 3. 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