The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,000 pounds @ $4.10 per pound) Direct labor (22,000 hours @ $10.30 per hour) $ 188,600 226,600 Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs Actual quantity Actual Cost 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.) 46,000 X X $188,600 Direct materials price variance Direct materials quantity variance Direct labor efficiency variance $ Actual price 4.10 $ 4,600 $ 41,550 176,900 17,250 34,500 24,000 97,200 16,200 222,750 $ Actual quantity 46,000 4,600 183,776 630,350 $ 1,045,550 X X $184,000 Unfavorable Unfavorable Unfavorable Standard price $ 4.00 $183,776 Standard quantity 56 Standard Cost X X $ 224 $ Chec Standard price 4.00

The company incurred the following actual costs wien it operated at 75% of capactlv in October. 2. Compute the direct materlals varlance, including its price and quantify var lances, Andicote the effect of eoch variance by selecting favoroble, unfovorable, or no variance.)