Antuan Company set the following standard costs for one unit of its product. $20.00 Direct materials (4.0 Ibs. @ $5.00 per Ib.) Direct labor (1.9 hrs. @ $11.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) 20.90 35.15 Total standard cost $76.05 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 (754 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 23,000 Depreciation-Machinery 72,000 Taxes and insurance 18,000 Supervision 279, 250 Total Fixed overhead costs $135,000 392, 250 Total overhead costs $527, 250 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,500 Ibs. @ $5.20 per lb.) Direct labor (23,000 hrs. @ $11.40 per hr.) 319,800 262,200 Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision $ 41,600 176,000 17,250 34,500 23,000 97,200 16, 200 279, 250 685,000 Total costs $1,267,000 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. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget for Flexible Budget Variable Total Fixed Amount per Cost Unit 65% of capacity 75% of capacity 85% of capacity Sales (in units) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance $ 0.00 0 0 0 Total variable costs Fixed overhead costs DepreciationBuilding Depreciation-Machinery Taxes and insurance Supervision 0 0 0 0 Total fixed costs Total overhead costs