Direct materials (3.0 pounds @ $5.00 per pound) Direct labor (1.9 hours @ $14.00 per hour) Overhead (1.9 hours @ $18.50 per hour) Standard cost per unit $ 15.00 26.60 35.15 $ 76.75 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 (751 Capacity) Variable overhead costs Indirect materials $ 30,000 Indirect labor 75,000 Pover 30,000 Maintenance 30,000 Total variable overhead costs 165,000 Fixed overhead costs Depreciation-Building 25,000 Depreciation Machinery 71,000 Taxes and insurance 17,000 Supervisory salaries 249,250 Total fixed overhead costs 362,250 Total overhead coats $ 527,250 The company incurred the following actual costs when it operated at 75% of capacity in October Direct materials (46,000 pounds + $5.10 per pound) $ 234,600 Direct labor (21,000 hours $14.10 per hour) 296,100 Overhead costs Indirect materials $ 41,700 Indirect labor 176,300 Power 34,500 Maintenance 34,500 Depreciation-Building 25,000 Depreciation Machinery 95,850 Taxes and insurance 15.300 Supervisory salaries 249, 250 672,400 Total costa $ 1,203, 100 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 Overhead Budgets Flexible Budget at Capacity Level of For Month Ended October 31 Variable Amount Total Fixed Cost 65% 75% 85% Production (in units) Variable overhead costs per Unit Fixed overhead costs Total overhead costs