Edney Company employs a standard cost system for product costing. The per$-$unit standard cost of its product is:

Raw materials

Direct labor $(2$ direct labor hours $$$$8\mathrm{.}00$

Manufacturing overnect hour$)$

Total standard cost per unit

The manufacturing overhead rate is based on a normal capacity level of $600,000$ direct labor hours. $($Normal capacity is defined as the level of capacity needed to satisfy average customer demand over a period of two to fol years. Operationally, this level of capacity would take into consideration sales trends and both seasonal and cyclic factors affecting demand.$)$ The firm has the following annual manufacturing overhead budget:

$\backslash$table$[[$Variable$,$$$3,960,000$