Guin Company set the following standard costs per unit for its product.

Direct materials (4.0 pounds @ $5.00 per pound)$ 20.00Direct labor (1.8 hours @ $13.00 per hour)23.40Overhead (1.8 hours @ $18.50 per hour)33.30Standard cost per unit$ 76.70

The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factorys capacity of 20,000 units per month. Following are the companys budgeted overhead costs per month at the 75% capacity level.

Overhead Budget (75% Capacity)Variable overhead costs Indirect materials$ 15,000Indirect labor75,000Power15,000Maintenance30,000Total variable overhead costs135,000Fixed overhead costs DepreciationBuilding25,000DepreciationMachinery70,000Taxes and insurance18,000Supervisory salaries251,500Total fixed overhead costs364,500Total overhead costs$ 499,500

The company incurred the following actual costs when it operated at 75% of capacity in October.

Direct materials (61,000 pounds @ $5.10 per pound) $ 311,100Direct labor (22,000 hours @ $13.30 per hour) 292,600Overhead costs Indirect materials$ 41,400 Indirect labor176,600 Power17,250 Maintenance34,500 DepreciationBuilding25,000 DepreciationMachinery94,500 Taxes and insurance16,200 Supervisory salaries251,500656,950Total costs $ 1,260,650