@ mework a Surved Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $4.00 per Ib.) Direct labor (1.9 hrs. $14.00 per hr.) Overhead (1.9 hrs. $18.50 per hr.) Total standard cost $16.00 26.60 35.15 $77.75 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 Iridirect materials $ 15,000 Indirect labor 75,000 Power 15,00 Repairs and maintenance 30,000 Total variable overhead costs $135,000 Fixed overhead costs Depreciation-Building 25,000 Depreciation Machinery 71,080 Taxes and insurance 16,68 Supervision 280,250 Total fixed overhead costs 392,25e Total overhead costs $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 254,100 286,000 Direct materials (60,500 lbs. @ $4.20 per 1b.) Direct labor (20,688 hrs. @ $14.30 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 41,100 176,650 17,250 34,500 25,000 95,850 14,400 280, 250 685, 080 $1,225,100 to search Saved 4 Required: 1&2. 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. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Flexible Budget for Variable Amount Total Fixed 65% of 75% of e5% of per Unit Cost capacity capacity capacity Sales (in units) Variable overhead costs $ 0.00 0 0 0 Fixed overhead costs Depreciation Building Taxes and insurance Supervision 0 0 0 0 Total overhead costs