Direct materials (4.0 lbs. @ $6.00 per Ib.) $24.99 Direct labor (1.9 hrs. @ $13.00 per hr.) 24.70 Overhead (1.9 hrs. @ $18.50 per hr.) 35.15 Total standard cost $83.85 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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 Repairs and maintenance 30,000 Total variable overhead costs $135,000 Fixed overhead costs Depreciation Building 24,000 Depreciation Machinery 70,000 Taxes and insurance 16,000 Supervision 282,250 Total fixed overhead costs 392,250 Total overhead costs $527,250 InTal vernaan POETS DJL.EU Required information The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (61,000 lbs. @ $6.10 per lb.) $ 372,100 Direct labor (24,000 hrs. @ $13.40 per hr.) 321,600 Overhead costs Indirect materials $ 41,850 Indirect labor 176, 100 Power 17,250 Repairs and maintenance 34,500 Depreciation-Building 24,880 Depreciation Machinery 94,500 Taxes and insurance 14,480 Supervision 282,250 684,850 Total costs $1,378,550 Required: 182. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65% 75% and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed. of 10 2 3 4 5