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

Direct materials (4.0 Ibs. @ $4.00 per Ib.)	$	16.00
Direct labor (2.0 hrs. @ $14.00 per hr.)		28.00
Overhead (2.0 hrs. @ $18.50 per hr.)		37.00
Total standard cost	$	81.00

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		70,000
Taxes and insurance		18,000
Supervision		308,000
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 (61,500 Ibs. @ $4.10 per lb.)				$	252,150
Direct labor (20,000 hrs. @ $14.20 per hr.)					284,000
Overhead costs
Indirect materials	$	41,350
Indirect labor		176,300
Power		17,250
Repairs and maintenance		34,500
DepreciationBuilding		24,000
DepreciationMachinery		94,500
Taxes and insurance		16,200
Supervision		308,000			712,100
Total costs				$	1,248,250

ANTUAN COMPANY
Flexible Overhead Budgets
For Month Ended October 31
	Flexible Budget		Flexible Budget for
	Variable Amount per Unit	Total Fixed Cost	65% of capacity	75% of capacity	85% of capacity
Sales (in units)
Variable overhead costs
	$0.00		0	0	0
Fixed overhead costs
		0	0	0	0
Total overhead costs

Actual Cost			0				0	Standard Cost
		0
			$0	0			$0
				$0
				0

Actual Cost			0				0	Standard Cost
			$0	0			$0
				$0
				0