14 Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $6.00 per pound) $ 24.00 Direct labor (1.6 hours @ $10.00 per hour) 16.00 Part 1 of 4 Overhead (1.6 hours @ $18.50 per hour) 29.60 Standard cost per unit $ 69. 60 3 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory's points 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 Book Indirect materials $ 15 , 000 Indirect labor 75 ,000 Power 15 , 000 30, 000 Print Maintenance Total variable overhead costs 135 , 000 Fixed overhead costs Depreciation-Building 23 ,000 Depreciation Machinery 70, 000 References Taxes and insurance 17 ,000 Supervisory salaries 199,000 Total fixed overhead costs 309,000 Total overhead costs $ 444,900 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (60, 500 pounds @ $6.10 per pound) $ 369, 050 Direct labor (22, 000 hours @ $10. 20 per hour) 224, 400 Overhead costs Indirect materials $ 41, 300 Indirect labor 176, 100 Power 17 , 250 Maintenance 34, 500 Depreciation-Building 23 , 000 Depreciation Machinery 94, 500 Taxes and insurance 15, 300 Supervisory salaries 199, 000 600 , 950 Total costs $ 1, 194, 400 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels