Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $25,500 unfavorable. Direct labor efficiency variance = $72,000 (?) The standard calls for 3.10 direct labor hours per unit of output at $28.60 per labor hour. The standard direct labor hours for the units manufactured is 20.00% more than the total direct labor hours actually worked in August.
What was the total standard cost applied to production?
$46,500
$360,000
$432,000
$306,000
$385,500