At the beginning of the year, REO Corporation ("the Company"), a manufacturer of the famous "Ridin' the Storm Out" dog thunder jacket, had an expected production level of 5,000 units for the year. Additionally, the Company established the following standards: Standard Amount Standard price of direct $12.00 per materials per lb. lb Standard quantity of direct 5 lbs. materials per unit Standard rate of direct labor per hour $18.00 per hour Standard direct labor hours per unit 7.50 hours Variable manufacturing $9.00 per overhead per unit unit Total fixed manufacturing overhead $225,000 The Company is now in the process of analyzing its results as of the end of the period against the standards established at the beginning of the period. Information regarding the Company's actual results is as follows: