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

Direct materials (5.0 Ibs. @ $5.00 per Ib.)$25.00

Direct labor (1.7 hrs. @ $12.00 per hr.)20.40

Overhead (1.7 hrs. @ $18.50 per hr.)31.45

Total standard cost$76.85

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 labor90,000

Power15,000

Repairs and maintenance30,000

Total variable overhead costs $150,000

Fixed overhead costs

Depreciation?Building24,000

Depreciation?Machinery71,000

Taxes and insurance18,000

Supervision208,750

Total fixed overhead costs 321,750

Total overhead costs $471,750

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

Direct materials (76,500 Ibs. @ $5.20 per lb.) $397,800

Direct labor (21,000 hrs. @ $12.30 per hr.) 258,300

Overhead costs

Indirect materials$41,400

Indirect labor176,050

Power17,250

Repairs and maintenance34,500

Depreciation?Building24,000

Depreciation?Machinery95,850

Taxes and insurance16,200

Supervision208,750 614,000

Total costs $1,270,100

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.

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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 Flexible Budget for ariable Amount Total Fixed 65% of 75% of 85% of per Unit Cost capacity capacity capacity Sales (in units) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance Total variable costs 0.00 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed costs 0 0 Total overhead costs