Antuan Company set the following standard costs for one unit of its product. 34 Direct materials (6 Ibs. @ $5 per Ib.) $ 30 Direct labor (2 hrs. @ $17 per hr.) Overhead (2 hrs. @ $18.50 per hr.) Total standard cost $101 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory's 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 costs Indirect materials $ 45,000 Indirect labor 180,000 Power 45,000 Repairs and maintenance 90.000 Total variable overhead costs Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 80,000 Taxes and insurance 12,000 Supervision 79.000 Totalfixed overhead costs Total overhead costs $360,000 195,000 5555,000 The company incurred the following actual costs when it operated at 75% of capacity in October $ 464,100 526, 125 Direct materials (91,000 lbs. @ $5.10 per lb.) Direct labor (30,500 hrs. @ $17.25 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 44,250 177, 750 43,000 96,000 24,000 75,000 11.500 89,000 560,500 $1,550, 725 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