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 (5.0 Ibs. @ $4.00 per Ib.)	$	20.00
Direct labor (2.0 hrs. @ $14.00 per hr.)		28.00
Overhead (2.0 hrs. @ $18.50 per hr.)		37.00
Total standard cost	$	85.00

The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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	$	15,000
Indirect labor		75,000
Power		15,000
Repairs and maintenance		30,000
Total variable overhead costs				$	135,000
Fixed overhead costs
DepreciationBuilding		23,000
DepreciationMachinery		71,000
Taxes and insurance		18,000
Supervision		308,000
Total fixed overhead costs					420,000
Total overhead costs				$	555,000

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

Direct materials (76,500 Ibs. @ $4.10 per lb.)				$	313,650
Direct labor (19,000 hrs. @ $14.30 per hr.)					271,700
Overhead costs
Indirect materials	$	41,600
Indirect labor		176,200
Power		17,250
Repairs and maintenance		34,500
DepreciationBuilding		23,000
DepreciationMachinery		95,850
Taxes and insurance		16,200
Supervision		308,000			712,600
Total costs				$	1,297,950

rev: 03_28_2018_QC_CS-122864

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.