Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $6.00 per pound) Direct labor (1.8 hours @ $13.00 per hour) Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit $ 18.00 23.40 33.30 $ 74.70 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 30,000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building 23,000 Depreciation-Machinery Taxes and insurance Supervisory salaries 72,000 17,000 252,500 Total fixed overhead costs Total overhead costs 364,500 $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (45,500 pounds @ $6.20 per pound) Direct labor (20,000 hours @ $13.40 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,150 176,550 17,250 34,500 23,000 97,200 15,300 252,500 $ 282,100 268,000 657,450 $ 1,207,550