[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 (20 pounds @ $3.70 per pound) Direct labor (10 hours @ $8.80 per DLH) Variable overhead (10 hours @ $4.20 per DLH) Fixed overhead (10 hours @ $2.30 per DLH) Standard cost per unit $ 74.00 88.00 42.00 23.00 $ 227.00 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. Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead Fixed overhead Total overhead Operating Levels (% of capacity) 65% 40,300 403,000 $ 1,692,600 998,200 $ 2,690,800 7806 43,400 434,000 $ 1,822,800 998,200 $ 2,821,000 75% 46,500 465,000 $ 1,953,000 998, 200 $ 2,951,200 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. Actual variable overhead Actual fixed overhead Actual total overhead $ 1,650,000 1,048,000 $ 2,698,000