Overhead (2.0 hrs. $18.50 per hr.) Total standard cost 37.00 $79.00 The predetermined overhead rate ($18.50 per direct labor hour) is based on an exp capacity of 20,000 units per month. Following are the company's budgeted overhe level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance s 15,000 75,000 15,000 30,000 Total variable overhead costs $135,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total fixed overhead costs 24,000 70,000 16,000 310,000 420,000 $555,000 Total overhead costs