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Antuan Company set the following standard costs for one unit of its product.

Direct materials (3.0 Ibs. @ $6.00 per Ib.) $ 18.00

Direct labor (1.6 hrs. @ $14.00 per hr.) 22.40

Overhead (1.6 hrs. @ $18.50 per hr.) 29.60

Total standard cost $ 70.00

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 $ 30,000

Indirect labor 75,000

Power

30,000

Repairs and maintenance 30,000

Total variable overhead costs $ 165,000

Fixed overhead costs

DepreciationBuilding 24,000

DepreciationMachinery 71,000

Taxes and insurance 17,000

Supervision 167,000

Total fixed overhead costs 279,000

Total overhead costs $ 444,000

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

Direct materials (46,000 Ibs. @ $6.20 per lb.) $ 285,200

Direct labor (23,000 hrs. @ $14.20 per hr.) 326,600

Overhead costs

Indirect materials $ 41,850

Indirect labor 176,150

Power 34,500

Repairs and maintenance 34,500

DepreciationBuilding 24,000

DepreciationMachinery 95,850

Taxes and insurance 15,300

Supervision 167,000 589,150

Total costs $ 1,200,950

Required: 182. 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. ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 Flexible Budget Variable Amount Total Fixed 65% of per Unit Cost capacity Flexible Budget for 75% of capacity 85% of capacity i Sales (in units) Variable overhead costs Indirect materials Indirect labor Power Repairs and maintenance / / $ 0.00 Fixed overhead costs Total overhead costs

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