Antuan Company set the following standard costs for one unit of its product. Direct materials (6 Ibs. $5 per Ib.) $ 30 Direct labor (2 hrs. $17 per hr.) Overhead (2 hrs. $18.50 per hr.) Total standard cost 34 37 $101 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 Indirect labor $ 45,000 180,000 Power 45,000 Repairs and maintenance 90,000 Total variable overhead costs $360,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 80,000 Taxes and insurance 12,000 Supervision 79,000 Total fixed overhead costs 195,000 $555,000 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (91,000 Ibs. $5.10 per lb.) Direct labor (30,500 hrs. $17.25 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance $44,250 177,750 43,000 96,000 $ 464,100 526,125