Problem 23-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, C2 [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $6.00 per Ib.) $ 24.00 Direct labor (1.7 hrs. @ $13.00 per hr.) 22.10 Overhead (1.7 hrs. @ $18.50 per hr.) 31.45 Total standard cost $ 77.55 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factorys capacity of 20,000 units per month. Following are the companys budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $ 135,000 Fixed overhead costs DepreciationBuilding 25,000 DepreciationMachinery 72,000 Taxes and insurance 17,000 Supervision 222,750 Total fixed overhead costs 336,750 Total overhead costs $ 471,750 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 Ibs. @ $6.20 per lb.) $ 378,200 Direct labor (19,000 hrs. @ $13.10 per hr.) 248,900 Overhead costs Indirect materials $ 41,900 Indirect labor 176,900 Power 17,250 Repairs and maintenance 34,500 DepreciationBuilding 25,000 DepreciationMachinery 97,200 Taxes and insurance 15,300 Supervision 222,750 630,800 Total costs $ 1,257,900 rev: 03_28_2018_QC_CS-122864 Problem 23-3A Part 1&2 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.