[The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $4.00 per Ib.) $ 16.00 Direct labor (1.7 hrs. @ $13.00 per hr.) 22.10 Overhead (1.7 hrs. @ $18.50 per hr.) 31.45 Total standard cost $ 69.55 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factorys capacity of 20,000 units per month. Following are the companys 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 Repairs and maintenance 45,000 Total variable overhead costs $ 150,000 Fixed overhead costs DepreciationBuilding 24,000 DepreciationMachinery 71,000 Taxes and insurance 17,000 Supervision 209,750 Total fixed overhead costs 321,750 Total overhead costs $ 471,750 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (60,500 Ibs. @ $4.20 per lb.) $ 254,100 Direct labor (22,000 hrs. @ $13.20 per hr.) 290,400 Overhead costs Indirect materials $ 41,350 Indirect labor 176,700 Power 17,250 Repairs and maintenance 51,750 DepreciationBuilding 24,000 DepreciationMachinery 95,850 Taxes and insurance 15,300 Supervision 209,750 631,950 Total costs $ 1,176,450.

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