Seacrest Manufacturing produces ceramic teapots. Seacrest allocates overhead based on the number of direct labor hours. The company is looking into using a standard cost system and has developed the following standards (one "unit" is a batch of 100 teapots) iData Table Standards: Direct material 30 pounds per batch at $3.00 per pound Direct labor 2.0 hours per batch at $12.00 per hour Variable MOH standard rate $2.00 per direct labor hour Predetermined fixed MOH standard rate $7.00 per direct labor hour Total budgeted fixed MOH cost $1,670