Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the $65\%,75\%,$ and $85\%$ capacity levels.Direct materials $(4\mathrm{.}0$ pounds @ $$6.0$ per pound$)$

Direct labor $(1\mathrm{.}8$ hours @ $$14\mathrm{.}00$ per hour$)$

Overhead $(1\mathrm{.}8$ hours@ $$18\mathrm{.}50$ per hour$)$

Standard cost per unit

The standard overhead rate $($ $$18\mathrm{.}50$ per direct labor hour$)$ is based on a predicted activity level 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.

The company incurred the following actual costs when it operated at $75\%$ of capacity in October.