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

Direct materials (5.0 Ibs. @ $5.00 per Ib.)$25.00Direct labor (1.9 hrs. @ $10.00 per hr.)19.00Overhead (1.9 hrs. @ $18.50 per hr.)35.15Total standard cost$79.15

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 costsIndirect materials$15,000Indirect labor75,000Power15,000

Repairs and maintenance30,000Total variable overhead costs$135,000Fixed overhead costsDepreciation?Building23,000Depreciation?Machinery70,000Taxes and insurance16,000Supervision283,250Total fixed overhead costs392,250Total overhead costs$527,250

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

Direct materials (75,500 Ibs. @ $5.10 per lb.)$385,050Direct labor (20,000 hrs. @ $10.20 per hr.)204,000Overhead costsIndirect materials$41,550Indirect labor176,250Power17,250Repairs and maintenance34,500Depreciation?Building23,000Depreciation?Machinery94,500Taxes and insurance14,400Supervision283,250684,700Total costs$1,273,750

rev: 03_28_2018_QC_CS-122864

Problem 21-3A Part 1&2

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 Variable Amount per Total 65% of 75% of 85% of Unit Fixed Cost capacity capacity capacity Sales (in units) Variable overhead costs $ 0.00 0 0 0 Fixed overhead costs 0 0 0 Total overhead costs