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

Direct materials (6 Ibs. @ $5 per Ib.)	$	30
Direct labor (2 hrs. @ $17 per hr.)		34
Overhead (2 hrs. @ $18.50 per hr.)		37
Total standard cost	$	101

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	$	45,000
Indirect labor		180,000
Power		45,000
Repairs and maintenance		90,000
Total variable overhead costs				$	360,000
Fixed overhead costs
DepreciationBuilding		24,000
DepreciationMachinery		80,000
Taxes and insurance		12,000
Supervision		79,000
Total fixed overhead costs					195,000
Total overhead costs				$	555,000

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

Direct materials (91,000 Ibs. @ $5.10 per lb.)				$	464,100
Direct labor (30,500 hrs. @ $17.25 per hr.)					526,125
Overhead costs
Indirect materials	$	44,250
Indirect labor		177,750
Power		43,000
Repairs and maintenance		96,000
DepreciationBuilding		24,000
DepreciationMachinery		75,000
Taxes and insurance		11,500
Supervision		89,000			560,500
Total costs				$	1,550,725

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.