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

Direct materials (4.0 Ibs. @ $4.00 per Ib.) $ 16.00

Direct labor (1.9 hrs. @ $14.00 per hr.) 26.60

Overhead (1.9 hrs. @ $18.50 per hr.) 35.15

Total standard cost $ 77.75

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 24,000

Depreciationmachinery 72,000

Taxes and insurance 18,000

Supervision 263,250

Total fixed overhead costs 377,250

Total overhead costs $ 527,250

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

Direct materials (60,500 Ibs. @ $4.20 per lb.) $ 254,100

Direct labor (29,000 hrs. @ $14.40 per hr.) 417,600

Overhead costs Indirect materials $ 41,300

Indirect labor 176,550 Power 17,250

Repairs and maintenance 34,500

Depreciationbuilding 24,000

Depreciationmachinery 97,200

Taxes and insurance 16,200

Supervision 263,250 670,250

Total costs $ 1,341,950