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 (4.0 pounds $6.00 per pound) Direct labor (2.0 hours $11.00 per hour) Overhead (2.0 hours $18.50 per hour) Standard cost per unit $ 24.00 22.00 37.00 $ 83.00 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 Indirect labor Power $ 15,000 75,000 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation-Building Depreciation-Machinery 24,000 70,000 Taxes and insurance Supervisory salaries 17,000 309,000 420,000 $ 555,000 Total fixed overhead costs Total overhead costs The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 pounds $6.20 per pound) Direct labor (23,000 hours $11.40 per hour) Overhead costs Indirect materials Indirect labor Power Maintenance Depreciation-Building Depreciation-Machinery Taxes and insurance Supervisory salaries Total costs $ 41,000 176,450 17,250 34,500 24,000 94,500 15,300 309,000 $ 378,200 262,200 712,000 $ 1,352,400 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 65% Production (in units) Variable overhead costs 75% $ 0.00 $ 0 $ 0 $ Fixed overhead costs $ 0 $ 0 $ Total overhead costs 0 $ 85%