Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. @ $4.00 per Ib.) Direct labor (1.7 hrs. @ $12.00 per hr.) Overhead (1.7 hrs. @ $18.50 per hr.) Total standard cost $12.00 20.40 31.45 $63.85 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 45,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 70,000 Taxes and insurance 17,000 Supervision 210, 750 Total fixed overhead costs Total overhead costs $150,000 321,750 $ 471,750 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 193,200 266,200 Direct materials (46,000 Ibs. @ $4.20 per lb.) Direct labor (22,000 hrs. @ $12.10 per hr.) Overhead costs Indirect materials Indirect labor $ 41,650 176, 350 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 193,200 266,200 Direct materials (46,000 Ibs. @ $4.20 per lb.) Direct labor (22,000 hrs. @ $12.10 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,650 176,350 17,250 51,750 24,000 94,500 15,300 210, 750 631,550 $1,090,950 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 Variable Amount Total Fixed 65% of per Unit Cost capacity PICA Flexible Budget for 75% of 85% of capacity capacity Sales (in units) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance $ 0.00 Total variable costs Fixed overhead costs DepreciationBuilding DepreciationMachinery Taxes and insurance Supervision 000 Total fixed costs Total overhead costs