ANTUAN COMPANY
Flexible Overhead Budgets
For Month Ended October 31
	Flexible Budget		Flexible Budget for
	Variable Amount per Unit	Total Fixed Cost	65% of capacity	75% of capacity	85% of capacity
Sales (in units)
Variable overhead costs
	$0.00		0	0	0
Fixed overhead costs
		0	0	0	0
Total overhead costs

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.)	$	20.00
Direct labor (1.7 hrs. @ $12.00 per hr.)		20.40
Overhead (1.7 hrs. @ $18.50 per hr.)		31.45
Total standard cost	$	71.85

The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factorys capacity of 20,000 units per month. Following are the companys budgeted overhead costs per month at the 75% capacity level.

Overhead Budget (75% Capacity)
Variable overhead costs
Indirect materials	$	15,000
Indirect labor		90,000
Power		15,000
Repairs and maintenance		30,000
Total variable overhead costs				$	150,000
Fixed overhead costs
DepreciationBuilding		25,000
DepreciationMachinery		71,000
Taxes and insurance		18,000
Supervision		207,750
Total fixed overhead costs					321,750
Total overhead costs				$	471,750

The company incurred the following actual costs when it operated at 75% of capacity in October.

Direct materials (61,500 Ibs. @ $5.20 per lb.)				$	319,800
Direct labor (24,000 hrs. @ $12.30 per hr.)					295,200
Overhead costs
Indirect materials	$	41,950
Indirect labor		176,150
Power		17,250
Repairs and maintenance		34,500
DepreciationBuilding		25,000
DepreciationMachinery		95,850
Taxes and insurance		16,200
Supervision		207,750			614,650
Total costs				$	1,229,650

rev: 03_28_2018_QC_CS-122864

Required: 1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed.