Antuan Company set the following standard costs for one unit of its product Direct materials (4.0 lbs. @ $5.00 per lb) 20.00 Direct labor (2.0 hrs. $10.00 per hr.) Overhead (2.0 hrs. $18.50 per hr.) 20.00 37.00 Total standard cost $ 77.00 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 30,000 Total variable overhead costs $135,000 Fixed overhead costs Depreciation-building Depreciation-machinery Taxes and insurance Supervision 23,000 72,000 16,000 309,000 Total fixed overhead costs 420,000 Total overhead costs $555,000 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,000 lbs.@ $5.20 per lb.) Direct labor (28,000 hrs.@ $10.10 per hr.) Overhead costs $ 317,200 282,800 Indirect materials Indirect labor Power Repairs and maintenance Depreciation-building Depreciation-machinery Taxes and insurance Supervision $ 41,900 176,850 17,250 34,500 23,000 97,200 14,400 309,000 714,100 Total costs $ 1,314,100