Antuan Company set the following standard costs for one unit of its product. Direct materials (4.2 Ibs. @ $5.00 per Ib.) Direct labor (1.6 hrs. @ $12.00 per hr.) Overhead (1.6 hrs. @ $18.50 per hr.) Total standard cost $20.00 19.20 29.60 $68.80 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 30,000 Total variable overhead costs Fixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 70,000 Taxes and insurance 17,000 Supervision 198,000 Total fixed overhead costs Total overhead costs $135,000 309,000 $444,000 The company incurred the following actual costs when it operated at 75% of capacity in October. 311,100 231,800 Direct materials (61,000 Ibs. @ $5.10 per lb.) Direct labor (19,000 hrs. @ $12.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 41,750 176,250 17,250 34,500 24,000 94,500 15,300 198,000 601,550 $1,144,450 NEUn Flexible Budget Variable Amount Total Fixed per Unit Cost 65% of capacity Flexible Budget for 75% of 85% of capacity capacity Sales (in units) Variable overhead costs Fixed overhead costs overhead costs