Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. @ $6.00 per Ib.) Direct labor (1.9 hrs. @ $13.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) Total standard cost $18.00 24. 70 35. 15 $77.85 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. $135,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 70,000 Taxes and insurance 17,000 Supervision 281,250 Total fixed overhead costs Total overhead costs 392, 250 $527, 250 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46, 500 Ibs. @ $6.20 per lb.) Direct labor (21,000 hrs. @ $13.40 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation Building Depreciation Machinery Taxes and insurance Supervision Total costs 288, 300 281, 400 $ 41,150 176, 100 17, 250 34,500 24,000 94, 500 15, 300 281,250 684, 050 $1,253,750