Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $6.00 per pound) Direct labor (2.0 hours @ $13.00 per hour) Overhead (2.0 hours @ $18.50 per hour) Standard cost per unit $ 24.00 26.00 37.00 $ 87.00 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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 $ 15,000 75,000 Power 15,000 Maintenance 45,000 Total variable overhead costs 150,000 Fixed overhead costs 23,000 70,000 17,000 295,000 405,000 $ 555,000 Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 pounds @ $6.20 per pound). Direct labor (21,000 hours @ $13.20 per hour) Overhead costs $ 378,200 277,200 Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,300 176,500 17,250 51,750 23,000 94,500 15,300 295,000 714,600 $ 1,370,000 Problem 8-3A (Algo) Part 1 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. ANTUAN COMPANY Flexible Overhead Budgets Variable Amount Total Fixed For Month Ended October 31 per Unit Cost 65% Production (in units) Variable overhead costs Flexible Budget at Capacity Level of 85% 75%