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.

Problem 23-5A 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 (3.0 lbs. $4.0 per lb. 12.00 Direct labor (1.9 hrs. $11.0 per hr) Overhead (19 hrs. $18.50 per hr.) 20.90 35.15 Total standard cost 68.05 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% level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance $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 25,000 74,000 19,000 274,250 Total fixed overhead costs 392,250 Total overhead costs $527,250