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

Direct materials (4.0 Ibs. @ $6.00 per Ib.)	$	24.00
Direct labor (1.6 hrs. @ $13.00 per hr.)		20.80
Overhead (1.6 hrs. @ $18.50 per hr.)		29.60
Total standard cost	$	74.40

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		75,000
Power		15,000
Repairs and maintenance		30,000
Total variable overhead costs				$	135,000
Fixed overhead costs
Depreciationbuilding		24,000
Depreciationmachinery		71,000
Taxes and insurance		17,000
Supervision		197,000
Total fixed overhead costs					309,000
Total overhead costs				$	444,000

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

Direct materials (61,500 Ibs. @ $6.20 per lb.)				$	381,300
Direct labor (29,000 hrs. @ $13.20 per hr.)					382,800
Overhead costs
Indirect materials	$	41,200
Indirect labor		176,750
Power		17,250
Repairs and maintenance		34,500
Depreciationbuilding		24,000
Depreciationmachinery		95,850
Taxes and insurance		15,300
Supervision		197,000			601,850
Total costs				$	1,365,950

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 ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget for 75% of capacity Flexible Budget Variable Amount per Unit Total Fixed Cost 65% of capacity 85% of capacity Sales (in units) 13,000 15,000 17,000 Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance 1.00 5.00 1.00 2.00 13,000 65,000 13,000 26,000 15,000 75,000 15,000 30,000 17,000 85,000 17,000 34,000 Total variable costs 9.00 117,000 135,000 153,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision 24,000 71,000 17,000 197,000 24,000 71,000 17,000 197,000 24,000 71,000 17,000 197,000 Total fixed costs 0 309,000 309,000 309,000 Total overhead costs 426,000 $ 444,000 $ 462,000