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Kwikeze Company set the following standard costs for one unit of its product. Direct materials (4.5 lbs. $6 per lb) 2700 Direct labor (.5 hrs.

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Kwikeze Company set the following standard costs for one unit of its product. Direct materials (4.5 lbs. $6 per lb) 2700 Direct labor (.5 hrs. $12 per hr) 18.00 24.00 Total standard cost 6900 The predetermined overhead rate ($16 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% level. overhead Budget (75% capacity) Variable overhead costs $22.500 Indirect materials Indirect labor 90,000 22,500 Repairs and maintenance 45,000 180,000 Total variable overhead costs Fixed overhead costs Depreciation-building 24,000 72.000 Depreciation-machinery 18,000 Tax and insurance 66.000 Supervision 180,000 Total fixed overhead costs $360,000 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in october. 420,900 Direct materials (69,000 lbs, $610 per lb.) 16 MacBook Pro

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