Required information [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. @ $4.00 per Ib.) Direct labor (1.8 hrs. @ $14.00 per hr.) Overhead (1.8 hrs. @ $18.50 per hr.) Total standard cost $16.00 25.20 33.30 $74.50 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% 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 Fixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 72,000 Taxes and insurance 18,000 Supervision 250,500 Total fixed overhead costs Total overhead costs $135,000 364,500 $499,500 The company incurred the following actual costs when it operated at 75% of capacity in October. $ 250,100 271,700 Direct materials (61,000 Ibs. @ $4.10 per lb.) Direct labor (19,000 hrs. @ $14.30 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervision Total costs $ 41,000 176,500 17,250 34,500 24,000 97,200 16,200 250,500 657, 150 $1,178,950 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. Flexible Budget Variable Total Fixed Amount per Unit Cost Flexible Budget for 65% of 75% of 85% of capacity capacity capacity Sales (in units) Variable overhead costs $ 0.00 0 0 0 Fixed overhead costs 0 0 0 0 Total overhead costs