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 75,000 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 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 For Month Ended October 31 Production (in units) Variable overhead costs Fixed overhead costs Total overhead costs Flexible Overhead Budgets Variable Amount Total Fixed per Unit Cost Flexible Budget at Capacity Level of 75% 65% 85%