Antuan Company set the following standard costs per unit for its product. Direct materials (3.0 pounds @ $5.00 per pound) Direct labor (1.8 hours @ $13.00 per hour) Overhead (1.8 hours @ $18.50 per hour) Standard cost per unit $ 15.00 23.40 33.30 $ 71.70 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 $ 15,000 Indirect labor 75,000 Power 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed overhead costs Total overhead costs 364,500 $ 499,500 24,000 72,000 17,000 251,500 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (46,500 pounds @ $5.10 per pound) Direct labor (23,000 hours @ $13.20 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 237,150 303,600 $ 41,000 176,300 17,250 34,500 24,000 97,200 15,300 251,500 657,050 $ 1,197,800 Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. For Month Ended October 31 Production (in units) Variable overhead costs Fixed overhead costs Total overhead costs ANTUAN COMPANY Flexible Overhead Budgets Variable Amount Total Fixed per Unit Cost Flexible Budget at Capacity Level of 85% 65% 75%