[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. $6.00 per Ib.) Direct labor (2.0 hrs. $13.00 per hr.) Overhead (2.0 hrs. $18.50 per hr.) Total standard cost $18.00 26.00 37.00 $81.00 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. Overhead Budget (25% Capacity) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance $ 15,000 75,000 15,000 30,000 Total variable overhead costs $135,000 Fixed overhead costs Depreciation-Building 23,000 Depreciation-Machinery 72,000 Taxes and insurance 17,000 Supervision 308,000 Total fixed overhead costs 420,000 Total overhead costa $555,000 02 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,500 Ibs. Direct labor (21,000 hrs. Overhead costs Indirect materials Indirect labor Pover Repairs and maintenance Depreciation-Building Depreciation-Hachinery Taxes and insurance Supervision Total costs $6.10 per 1b.) $13.30 per hr.) $ 283,650 279,300 $ 41,250 176,250 -17,250 34,500 23,000 97,200 15,300 308,000 712,750 $1,275,700 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.) 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