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

Direct materials (3.0 Ibs. @ $5.00 per Ib.)	$	15.00
Direct labor (1.6 hrs. @ $13.00 per hr.)		20.80
Overhead (1.6 hrs. @ $18.50 per hr.)		29.60
Total standard cost	$	65.40

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		90,000
Power		15,000
Repairs and maintenance		30,000
Total variable overhead costs				$	150,000
Fixed overhead costs
Depreciationbuilding		23,000
Depreciationmachinery		71,000
Taxes and insurance		17,000
Supervision		183,000
Total fixed overhead costs					294,000
Total overhead costs				$	444,000

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

Direct materials (46,500 Ibs. @ $5.20 per lb.)				$	241,800
Direct labor (28,000 hrs. @ $13.20 per hr.)					369,600
Overhead costs
Indirect materials	$	41,600
Indirect labor		176,100
Power		17,250
Repairs and maintenance		34,500
Depreciationbuilding		23,000
Depreciationmachinery		95,850
Taxes and insurance		15,300
Supervision		183,000			586,600
Total costs				$	1,198,000

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 er Unit Total Fixed Cost 65% of capacity 85% of capacity Sales (in units) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance 15,000 90,000 15,000 30,000 0.00 150,000 0 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision 23,000 71,000 17,000 183,000 294,000 Total overhead costs