Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 70,000 units of product were as follows: Standard Costs Actual Costs Direct materials 175,000 lbs. at $5.70 173,300 lbs. at $5.50 Direct labor 17,500 hrs. at $16.50 17,900 hrs. at $16.90 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 18,260 direct labor hrs.: