[The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $6.00 per pound) Direct labor (2.0 hours @ $13.00 per hour) Overhead (2.0 hours $18.50 per hour) Standard cost per unit $ 18.00 26.00 37.00 $ 81.00 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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 (75% Capacity) Variable overhead costs Indirect materials Indirect labor $ 15,000 75,000 Power 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs 23,000 72,000 17,000 308,000 420,000 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs $ 555,000 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,000 pounds @ $6.10 per pound) Direct labor (20,000 hours @ $13.40 per hour) Overhead costs Indirect materials. Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 280,600 268,000 $ 41,100 176,150 17,250 34,500 23,000 97,200 15,300 308,000 712,500 $ 1,261,100 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.)