Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 lbs.@ $6.00 per lb.) Direct labor (1.8 hrs. @ $14.00 per hr.) Overhead (1.8 hrs. @ $18.50 per hr.) $24.00 25.20 33.30 Total standard cost $82.50 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 Indirect labor Power Repairs and maintenance $15,000 75,000 15,000 45,000 Total variable overhead costs $150,000 Fixed overhead costs Depreciation-building Depreciation-machinery Taxes and insurance Supervision 25,000 71,000 17,000 236,500 349,500 Total fixed overhead costs 499,500 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,500 lbs. @ $6.20 per lb.) Direct labor (28,000 hrs.@ $14.30 per hr.) Overhead costs $ 381,300 400,400 Indirect materials Indirect labor Power Repairs and maintenance Depreciation-building Depreciation-machinery Taxes and insurance Supervision $ 41,700 176,500 17,250 51,750 25,000 95,850 15,300 236,500 659,850 Total costs $1,441,550