Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost is applied on the basis of standard direct labor-hours. Variable manufacturing overhead should be $5.00 per standard direct labor-hour and fixed manufacturing overhead should be $2,295,000 per year. The company's product requires 4 pounds of material that has a standard cost of $10.50 per pound and 1.5 hours of direct labor time that has a standard rate of $13.50 per hour. The company planned to operate at a denominator activity level of 255,000 direct labor-hours and to produce 170,000 units of product during the most recent year. Actual activity and costs for the year were as follows: 204,000 Number of units produced 331,500 Actual direct labor-hours worked 961,350 Actual variable manufacturing overhead cost incurred 2,652,000 Actual fixed manufacturing overhead cost incurred