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Antuan Company set the following standard costs per unit for its product. The standard overhead rate ( $18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory 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. Direct materials (46,500 pounds e $6.10 per pound) Direct labor (20,600 hours @ $13,30 per hour) Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%,75%, and 85% capacity levels. ANTUAN COMPANY Flexible Overhead Budgets