Required information [The following information applies to the questions displayed below.] Sedona Company set the following standard costs for one unit of its product for this year. Direct material (30 pounds @ $2.30 per pound) Direct labor (20 hours @ $4.30 per DLH) Variable overhead (20 hours @ $2.30 per DLH) Fixed overhead (20 hours @ $1.20 per DLH) Standard cost per unit $ 69.00 86.00 46.00 24.00 $ 225.00 The $3.50 ($2.30 + $1.20) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 41,400 units, which is 60% of the factory's capacity of 69,000 units per month. The following monthly flexible budget information is available. Operating Levels (% of capacity) Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead 55% 37,950 759,000 $ 1,745,700 60% 41,400 828,000 65% 44,850 897,000 Fixed overhead Total overhead 993,600 $ 2,739,300 $ 1,904,400 993,600 $ 2,898,000 $ 2,063,100 993,600 $ 3,056,700 During the current month, the company operated at 55% of capacity, direct labor of 731,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead Actual fixed overhead Actual total overhead $ 1,710,000 1,031,500 $ 2,741,500