LatAm Inc. has a standard costing system in which it applies overhead to products on the basis of the standard direct labour-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year $ 500,000 Actual fixed overhead cost for the year $ 512,000 Budgeted standard direct labour-hours (denominator level of activity) 50,000 Actual direct labour-hours 54,000 Standard direct labour-hours allowed for the actual output 52,000