(Answered) : Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $5.00 per Ib.) $ 20.0

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

Direct materials (4.0 Ibs. @ $5.00 per Ib.) $ 20.00
Direct labor (1.7 hrs. @ $12.00 per hr.) 20.40
Overhead (1.7 hrs. @ $18.50 per hr.) 31.45
Total standard cost $ 71.85

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.

Overhead Budget (75% Capacity)
Variable overhead costs
Indirect materials $ 15,000
Indirect labor 90,000
Power
15,000

Repairs and maintenance 30,000
Total variable overhead costs $ 150,000
Fixed overhead costs
Depreciation—Building 25,000
Depreciation—Machinery 71,000
Taxes and insurance 18,000
Supervision 207,750
Total fixed overhead costs 321,750
Total overhead costs $ 471,750

The company incurred the following actual