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The standard overhead rate ( $ 1 8 . 5 0 per direct labor hour ) is based on a predicted activity level of 7

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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.
The company incurred the following actual costs when it operated at 75% of capacity in October.
Required:
Prepare flexible overhead budgets for October showing amounts of each varlable and fixed cost at the 65%,75%, and 85% capacity
levels.
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