Direct materials (4.0 Ibs. $5.00 per Ib.) Direct labor (1.8 hrs. @ $12.00 per hr.) Overhead (1.8 hrs. @ $18.50 per hr.) Total standard cost $20.00 21.60 33.30 $74.90 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected vo capacity of 20,000 units per month. Following are the company's budgeted overhead costs level. Overhead Budget (758 Capacity) Variable overhead costs Indirect materials. $ 15,000 Indirect labo 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $135,000 Fixed overhead costs Depreciation-Building 24,000 Depreciation-Machinery 71,000 Taxes and insurance 17,000 Supervision 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 Oct Direct materials (61,000 Ibs. @ $5.20 per lb.) Direct labor (19,000 hrs. @ $12.20 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery mavee and ineurance $ 41,950 176,950 17,250 34,500 24,000 95,850 15 300 $ 317,200 231,800