Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $4.00 per Ib.) Direct labor (1.8 hrs. @ $13.00 per hr.) Overhead (1.8 hrs. @ $18.50 per hr.) Total standard cost $16.00 23.40 33.30 $72.70 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 $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 25,000 Depreciation-Machinery 70,000 Taxes and insurance 16,000 Supervision 253,500 Total fixed overhead costs Total overhead costs $135,000 364,500 $499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 252,150 264,000 Direct materials (61,500 lbs. @ $4.10 per lb.) Direct labor (20,000 hrs. @ $13.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 41,800 176,700 17,250 34,500 25,000 94,500 14,400 253,500 657, 650 $1,173,800 253,500 Supervision Total costs 657,650 $1,173,800 Problem 08-3A Part 1&2 Required: 182. 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 Flexible Budget for Variable Amount Total Fixed 65% of 75% of 85% of Cost capacity capacity capacity 13,000 15,000 17,000 per Unit $ 1.00 Sales (in units) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance 13,000 65,000 5.00 15,000 75,000 15,000 30,000 17,000 85,000 17,000 34,000 1.00 13,000 26,000 2.00 $ 9.00 117,000 135,000 153,000 $ Total variable costs Fixed overhead costs Depreciation-Building DepreciationMachinery Taxes and insurance Supervision 25,000 70,000 16,000 253,500 25,000 70,000 16,000 253,500 25,000 70,000 16,000 253,500 25,000 70,000 16,000 253,500 Total fixed costs 364,500 364,500 $ 481,500 364,500 499,500 364,500 517,500 Total overhead costs $ $