Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $6.00 per pound) $ 24.00 Direct labor (1.8 hours @ $14.00 per hour) 25.20 Overhead (1.8 hours @ $18.50 per hour) 33.30 Standard cost per unit $ 82.50 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 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs DepreciationBuilding 25,000 DepreciationMachinery 71,000 Taxes and insurance 18,000 Supervisory salaries 250,500 Total fixed overhead costs 364,500 Total overhead costs $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,500 pounds @ $6.20 per pound) $ 381,300 Direct labor (22,000 hours @ $14.20 per hour) 312,400 Overhead costs Indirect materials $ 41,550 Indirect labor 176,350 Power 17,250 Maintenance 34,500 DepreciationBuilding 25,000 DepreciationMachinery 95,850 Taxes and insurance 16,200 Supervisory salaries 250,500 657,200 Total costs $ 1,350,900 14.Award: 3.00 points Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. References Expanded tableLearning Objective: 08-P1 Prepare a flexible budget and interpret a flexible budget performance report.Learning Objective: 08-P3 Compute direct materials and direct labor variances Difficulty: 3 HardLearning Objective: 08-P2 Compute the total cost variance.Learning Objective: 08-P4 Compute overhead controllable and volume variances. 2021 McGraw-Hill Education. All rights reserved