Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds $4.90 per pound) Direct labor (4 hours @ $16 per hour) Variable overhead (4 hours @ $6 per hour) Fixed overhead (4 hours @ $10 per hour) Standard cost per unit $ 147.00 64.00 24.00 40.00 $ 275.00 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 53,000 units per quarter. The following additional information is available. Production (in units) Standard direct labor hours (4 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead Operating Levels 70% 80% 90% 37,100 148,400 42,400 169,600 47,700 190,800 $ 1,696,000 $ 1,696,000 $ 1,696,000 $ 890,400 $ 1,017,600 $ 1,144,800 During the current quarter, the company operated at 90% of capacity and produced 47,700 units; actual direct labor totaled 185,800 hours. Units produced were assigned the following standard costs. Direct materials (1,431,000 pounds @ $4.90 per pound) Direct labor (190,800 hours $16 per hour) Overhead (190,800 hours $16 per hour) Standard (budgeted) cost $ 7,011,900 3,052,800 3,052,800 $ 13,117,500 Actual costs incurred during the current quarter follow. Direct materials (1,412,000 pounds $7.70 per pound) Direct labor (185,800 hours @ $11.00 per hour) Fixed overhead Variable overhead Actual cost $ 10,872,400 2,043,800 1,318,500 1,282,700 $ 15,517,400