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

Direct materials (4.0 Ibs. @ $5.00 per Ib.)	$	20.00
Direct labor (1.8 hrs. @ $14.00 per hr.)		25.20
Overhead (1.8 hrs. @ $18.50 per hr.)		33.30
Total standard cost	$	78.50

The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factorys capacity of 20,000 units per month. Following are the companys 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
DepreciationBuilding		24,000
DepreciationMachinery		72,000
Taxes and insurance		18,000
Supervision		250,500
Total fixed overhead costs					364,500
Total overhead costs				$	499,500

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

Direct materials (60,500 Ibs. @ $5.10 per lb.)				$	308,550
Direct labor (22,000 hrs. @ $14.10 per hr.)					310,200
Overhead costs
Indirect materials	$	41,600
Indirect labor		176,200
Power		17,250
Repairs and maintenance		34,500
DepreciationBuilding		24,000
DepreciationMachinery		97,200
Taxes and insurance		16,200
Supervision		250,500			657,450
Total costs				$	1,276,200

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. Part 1 of 4 8 points ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Variable Amount Total Fixed 65% of per Unit Cost capacity Flexible Budget for 75% of capacity 85% of capacity Sales (in units) Variable overhead costs Fixed overhead costs Total overhead costs