James Corp, applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget: Operating Levels 80% 10,000 Overhead Budget Production in units Standard direct labor hours Budgeted overhead Variable overhead costs. Indirect materials Indirect labor Power 30,000 $ 20,400 30,000 6,000 Maintenance 3,600 Total variable costs: 60,000 M Fixed overhead costs. Rent of factory building 12,000 nces Depreciation-Machinery 11,800 Supervisory salaries 30,200 Total fixed costs 54,000 Total overhead costs $114,000 During May, the company operated at 90% capacity (11,250 units) and incurred the following actual overhead costs: Overhead costs (actual) Indirect materials Indirect labor Power Maintenance Kent of factory building Depreciation Machinery Supervisory salaries Total actual overhead costs $ 20,400 33,350 6,750 4,880 12,000 11,800 33,500 $122,680