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

Direct materials ((3.0 Ibs. @ \$5.0 per Ib.) \$ 15.00
Direct labor (1.7 hrs. @ \$14.0 per hr.) 23.80
Overhead (1.7 hrs. @ \$18.50 per hr.) 31.45
Total standard cost \$ 70.25

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% level.

Indirect materials \$ 15,000
Indirect labor 75,000
Power 15,000
Repairs and maintenance 30,000
Total variable overhead costs \$ 135,000
Depreciation - building 23,000
Depreciation - machinery 73,000
Taxes and insurance 20,000
Supervision 220,750

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

Direct materials (46,000 Ibs. @ \$5.20 per lb.) \$ 239,200
Direct labor (31,000 hrs. @ \$14.40 per hr.) 446,400
Indirect materials \$ 43,750
Indirect labor 176,750
Power 17,250
Repairs and maintenance 34,500
Depreciation - building 23,000
Depreciation - machinery 98,550
Taxes and insurance 18,000
Supervision 220,750 632,550
Total costs \$ 1,318,150

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The expert examines flexible overhead budgets.

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Direct material -14200 unfavorable
Direct ...

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