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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 (4.0 Ibs. @ $5.00 per Ib.) Direct labor (1.9 hrs. @ $12.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) Total standard cost 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 (75% Capacity) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead costs Total overhead costs $ 15,000 75,000 15,000 30,000 25,000 71,000 17,000 279,250 $20.00 22.80 35.15 $77.95 Direct materials (61,500 Ibs. @ $5.10 per lb.) Direct labor (21,000 hrs. @ $12.10 per hr.) $135,000 392,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 313,650 254,100

Required information [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. 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. The company incurred the following actual costs when it operated at 75% of capacity in October. The company incurred the following octual costs when it operated at 75% of capacity in October. 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.)

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