Antuan Company set the following standard costs for one unit of its product.

Direct materials ((3.0 Ibs. @ $5.0 per Ib.)	$	15.00
Direct labor (1.7 hrs. @ $11.0 per hr.)		18.70
Overhead (1.7 hrs. @ $18.50 per hr.)		31.45
Total standard cost	$	65.15

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% level.

Overhead Budget (75% Capacity)

Variable overhead costs
Indirect materials	$	15,000
Indirect labor		75,000
Power		15,000
Repairs and maintenance		30,000
Total variable overhead costs				$	135,000
Fixed overhead costs
Depreciationbuilding		24,000
Depreciationmachinery		73,000
Taxes and insurance		18,000
Supervision		221,750
Total fixed overhead costs					336,750
Total overhead costs				$	471,750

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

a

Direct materials (45,500 Ibs. @ $5.20 per lb.)				$	236,600
Direct labor (29,000 hrs. @ $11.10 per hr.)					321,900
Overhead costs
Indirect materials	$	45,750
Indirect labor		177,250
Power		17,250
Repairs and maintenance		34,500
Depreciationbuilding		24,000
Depreciationmachinery		98,550
Taxes and insurance		16,200
Supervision		221,750			635,250
Total costs				$	1,193,750