Required Information [The following Information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (4.8 pounds @ $5.00 per pound) Direct labor (1.9 hours @ $11.88 per hour) Overhead (1.9 hours @ $18.50 per hour) Standard cost per unit $ 20.00 28.90 35.15 $76.05 The standard overhead rate ($18.50 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. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,888 Power 15,000 Maintenance 45,000 Total variable overhead costs 150,000 Fixed overhead costs Depreciation-Building Depreciation Machinery Taxes and insurance Supervisory salaries 24,888 72,888 16,800 265,258 Total fixed overhead costs 377,258 $527,258 Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,880 pounds @ $5.28 per pound) Direct labor (21,888 hours @ $11.28 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and Insurance Supervisory salaries Total costs $317,200 235,200 $ 41,300 176,488 17,258 51,758 24,000 97,280 14,400 265,258 687,558 $ 1,239,958 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 Budget at Capacity Level of Flexible Overhead Budgets For Month Ended October 31 Variable Amount Total Fixed per Unit Cost 86% Production (in units) Variable overhead costs Fixed overhead costs Total overhead costs 76% 36%