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Antuan Company set the following standard costs per unit for its product.

Direct materials (4.0 pounds @ $4.00 per pound)$ 16.00Direct labor (2.0 hours @ $11.00 per hour)22.00Overhead (2.0 hours @ $18.50 per hour)37.00Standard cost per unit$ 75.00

The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level 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$ 15,000Indirect labor75,000Power15,000Maintenance30,000Total variable overhead costs135,000Fixed overhead costs DepreciationBuilding24,000DepreciationMachinery71,000Taxes and insurance16,000Supervisory salaries309,000Total fixed overhead costs420,000Total overhead costs$ 555,000

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

Direct materials (61,000 pounds @ $4.20 per pound) $ 256,200Direct labor (22,000 hours @ $11.30 per hour) 248,600Overhead costs Indirect materials$ 41,050 Indirect labor177,000 Power17,250 Maintenance34,500 DepreciationBuilding24,000 DepreciationMachinery95,850 Taxes and insurance14,400 Supervisory salaries309,000713,050Total costs $ 1,217,850

Required:

1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels.

ANTUAN COMPANY Flexible Overhead Budgets