Trini Company set the following standard costs per unit for its single product. Direct materials (30 lbs. @ $4 per lb.) Direct labor (5 hrs. @ $14 per hr.) Variable overhead (5 hrs. @ $8 per hr.) Fixed overhead (5 hrs. @ $10 per hr.) Standard cost per unit $120 70 40 50 $280 Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company's capacity of 60.000 units per quarter. The following additional information is available. Capacity Level Production (in units) 7096 42.000 units 80% 90% Standard direct labor hours (5 DLH/unit) Budgeted overhead (flexible budget 210.000 hrs. 48.000 units 240.000 hrs. 54,000 units 270,000 hrs. Fixed overhead $2.400.000 $2,400,000 Page 889