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Direct materiale (4.0 Tbs. @ $5.00 per Ib. 1 Direct labor (1.9 hrs. $12.00 per hr.) Overhead (1.9 hrn. $18.50 per hr.) Total standard cost $20.00 22.80 35.15 $77.95 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume 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. $135,000 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 Fixed overhead costs Depreciation-Building 24,000 Depreciation Machinery 71,000 Taxes and insurance 18,000 Supervision 279,250 Total fixed overhead costs Total overhead costs 392, 250 $527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. 314,600 260,400 Direct materials (60,500 lbs. $5.20 per lb.) Direct labor (21,000 hrs. e $12.40 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision $ 41,800 176,800 17.250 34,500 24,000 95,850 16,200 279,250 685,650 The company incurred the following actual costs when it operated at 75% of capacity in October $ 314,600 260,400 Direct materials (60,500 Ibe. @ $5.20 per lb.) Direct labor (21,000 hrs. $12.40 per hr.) Overhead costs Indirect materials Indirect labor Power Repairs and maintenance Depreciation-Building Depreciation Machinery Taxes and insurance Supervision Total costs $ 41,800 176,800 17,250 34,500 24,000 95,850 16,200 279,250 685,650 $1,260,650 Required: 1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fed 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 Flexible Budget for Variable Total Fixed 65% of 75% of 85% of Amount per Unit Cost capacity capacity capacity Sales (in units) Variable overhead costs $ 0.00 0 D 0 Fixed overhead costs O Total overhead costa

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