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

Direct materials (3.0 pounds @ $5.00 per pound)	$ 15.00
Direct labor (1.7 hours @ $14.00 per hour)	23.80
Overhead (1.7 hours @ $18.50 per hour)	31.45
Standard cost per unit	$ 70.25

The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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
Maintenance	30,000
Total variable overhead costs	135,000
Fixed overhead costs
DepreciationBuilding	24,000
DepreciationMachinery	72,000
Taxes and insurance	18,000
Supervisory salaries	222,750
Total fixed overhead costs	336,750
Total overhead costs	$ 471,750

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

Direct materials (45,500 pounds @ $5.20 per pound)		$ 236,600
Direct labor (21,000 hours @ $14.10 per hour)		296,100
Overhead costs
Indirect materials	$ 41,800
Indirect labor	176,800
Power	17,250
Maintenance	34,500
DepreciationBuilding	24,000
DepreciationMachinery	97,200
Taxes and insurance	16,200
Supervisory salaries	222,750	630,500
Total costs		$ 1,163,200

Problem 21-3A (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 COMPANYFlexible Overhead BudgetsFor Month Ended October 31Variable Amount per UnitTotal Fixed CostFlexible Budget at Capacity Level of65%75%85%Production (in units)Variable overhead costsIndirect materials$41,300Indirect labor75,000.00Power15,000.00Maintenance30,000.00Total variable overhead$120,000.00$0$0$0Fixed overhead costsDepreciationBuilding$25,000DepreciationMachinery71,000Taxes and insurance18,000Supervisory salaries222,750Total fixed overhead$0$0$0$0Total overhead costs