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 (15 pounds @ $3.20 per pound) Direct labor (10 hours @ $7.00 per DLH) Variable overhead (10 hours @ $4.10 per DLH) Fixed overhead (10 hours @ $1.70 per DLH) Standard cost per unit $ 48.00 70.00 41.00 17.00 $176.00 The $5.80 ($4.10 +$1.70) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 35,700 units, which is 70% of the factory's capacity of 51,000 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 Fixed overhead Total overhead 65% 33,150 331,500 $ 1,359,150 606,900 $ 1,966,050 70% 35,700 357,000 75% 38,250 382,500 $1,568,250 606,900 606,900 $1,463,700 $2,070,600 $2,175,150 During the current month, the company operated at 65% of capacity, direct labor of 320,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead. Actual fixed overhead Actual total overhead $1,325,000 649,650 $1,974,650