Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $26,000 unfavorable. Direct labor efficiency variance = $74,000 (?) The standard calls for 3.10 direct labor hours per unit of output at $29.10 per labor hour. The standard direct labor hours for the units manufactured is 21.00% more than the total direct labor hours actually worked in August.
What was the total standard cost applied to production?