Sedona Company set the following standard costs for one unit of its product for this year. The $6.50($4.20+$2.30) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 43.400 units, which is 70% of the factory's capacity of 62,000 units per month. The following monthly flexible budget information is available. During the current month, the company operated at 65% of capacity, direct labor of 389,000 hours were used, and the following actual overhead costs were incurred. At 65% of Operating Capacity Standard Direct Labor Hours Overhead Rate Favorable/Unfavorable