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: Overhead Budget Production in units Standard direct labor hours Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Operating Levels 80% 10,000 30,000 $ 20,400 30,000 6,000 Maintenance 3,600 Total variable costs 60,000 Fixed overhead costs Rent of factory building. 12,000 Depreciation-Machinery 11,800. Supervisory salaries 30,200 Total fixed costs 54,000 $114,000 Total overhead costs 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 $ 20,400 33,350 6,750 4,880