Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. @ $4.00 per Ib.) Direct labor (1.9 hrs. @ $13.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) Total standard cost $12.00 24.70 35.15 $71.85 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% capaci level. $135,000 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 Fixed overhead costs Depreciation-Building 24,800 Depreciation-Machinery 71,000 Taxes and insurance 18,000 Supervision 279, 250 Total fixed overhead costs Total overhead costs 392, 250 $ 527,250 The company incurred the following actual costs when it operated at 75% of capacity in October $ 188,600 288, 200 Direct materials (46,000 lbs. @ $4.10 per lb.) Direct labor (22,000 hrs. @ $13.10 per hr.) 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 Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 71,000 Taxes and insurance 18,000 Supervision 279, 250 Total fixed overhead costs Total overhead costs $135,000 392,250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October $ 188,600 288, 200 Direct materials (46,000 lbs. @ $4.10 per lb.) Direct labor (22,000 hrs. @ $13.10 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,700 176,350 17,250 34,500 24,000 95,850 16,200 279, 250 685,100 $1,161,900 Required: 1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost a 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 Flexible Budget for Variable Amount Total Fixed 65% of 75% of 85% of Cost capacity capacity capacity 13,000 15,000 17,000 per Unit Sales (in units) Variable overhead costs Indirect materials $ 1.00 Indirect labor 5.00 1.00 13,000 65,000 13,000 26,000 15,000 75,000 15,000 30,000 Power Repairs and maintenance 17.000 85,000 17,000 34,000 2.00 $ 9.00 117,000 135,000 153,000 Fixed overhead costs 0 0 0 Total Overhead costs ME