Sheridan Company's overhead rate was based on estimates of $$979,200$ for overhead costs and $81,600$ direct labor hours. Sheridan's standards allow $2$ hours of direct labor per unit produced. Production in May was $3,465$ units, and actual overhead incurred in May was $$84,000.$ The overhead budgeted for $6,930$ standard direct labor hours is $$82,640($$$27,200$ fixed and $$55,440$ variable$).$