The Oakleigh Company has the information available for its production facility for the month of July. The budgeted activity level for fixed manufacturing overhead was estimated to be 48 000 machine hours for the production cycle. Actual machine hours for the period were 50 000, which resulted in the completion of 9900 units. Materials purchased (21 000 items) $819 000 Material quantity variance Actual labour cost (15 000 hours) Machine hours used $39 600 U $102 000 50 000 Variable overhead spending variance $2 500 U Actual fixed manufacturing overhead $150 000 Oakleigh's standard costs per unit are as follows: Direct materials Direct labour Variable overhead (applied on machine hours basis) Fixed overhead (applied on machine hour basis) 20 components @ $4 per item 1.5 hours @$6 per hour 4.8 hours @$2.5 per hour 4.8 hours @ $3 per hour