Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $6.00 per pound) Direct labor (1.9 hours @ $12.00 per hour) Overhead (1.9 hours @ $18.50 per hour) Standard cost per unit $ 18.00 22.80 35.15 $ 75.95 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 $ 15,000 Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs 75,000 15,000 30,000 135,000 25,000 72,000 16,000 279,250 392,250 $ 527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,000 pounds @ $6.20 per pound) Direct labor (23,000 hours @ $12.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,550 176,950 17,250 34,500 25,000 97,200 14,400 279,250 $ 285,200 280,600 686,100 $ 1,251,900 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 Budget at Capacity Level of Flexible Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost 65% Production (in units) Variable overhead costs 75% 85% $ 0.00 $ 0 $ 0 $ 0 Fixed overhead costs $ 0 $ 0 $ 0 $ 0 Total overhead costs