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 (1.9 hrs. @ $13.00 per hr.) 24.70 Overhead (1.9 hrs. @ $18.50 per hr.) 35.15 Total standard cost $ 74.85 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 25,000 DepreciationMachinery 71,000 Taxes and insurance 16,000 Supervision 280,250 Total fixed overhead costs 392,250 Total overhead costs $ 527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,000 Ibs. @ $5.20 per lb.) $ 239,200 Direct labor (21,000 hrs. @ $13.30 per hr.) 279,300 Overhead costs Indirect materials $ 41,300 Indirect labor 176,450 Power 17,250 Repairs and maintenance 34,500 DepreciationBuilding 25,000 DepreciationMachinery 95,850 Taxes and insurance 14,400 Supervision 280,250 685,000 Total costs $ 1,203,500 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.