Antuan Company set the following standard costs per unit for its product Direct materials (4.2 pounds @ $6.00 per pound) Direct labor (1.8 hours $12.00 per hour) $ 24.00 Overhead (1.8 hours @ $18.50 per hour) 21.60 33.30 Standard cost per unit $ 78.99 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 45,000 Total variable overhead costs 150,000 Fixed overhead costs Depreciation-Building 25,000 Depreciation-Machinery 72,000 Taxes and insurance 16,000 Supervisory salaries 236,500 Total fixed overhead costs 349,500 Total overhead costs $ 499,500 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (60,500 pounds @ $6.10 per pound) $ 369, 050 Direct labor (20,000 hours @ $12.30 per hour) 246,000 Overhead costs Indirect materials $ 41,650 Indirect labor 176,250 Power 17,250 Maintenance 51,750 Depreciation-Building 25,000 Depreciation-Machinery 97,200 Taxes and insurance 14,400 Supervisory salaries 236,500 660,000 Total costs $ 1,275,050