First,pipe is measured by the inside diameter,not the outside.
Second,bullet levels are notoriously inaccurate,especially cheap ones,get yourself a decent level,at least 2',with a magnet to hold it to the pipe,it will make your life easier.
Third,to "plumb" the pole attach the level to the side of the pipe and adjust the pipe til the bubble is centered.Rotate the level 90 degrees around the pipe and check/adjust again,rinse and repeat til both planes are plumb.
To check the truth of the level,rotate the level 180 degrees,if the bubbles still agree with each other,you're good to go.
I took the pole back to menards. The would not give me a refund so I exchanged it for another one that was the correct size. I got the level with the magnet as suggested. when I check the pole for level it is same as before. Either level on the side or on the top but not both ways. I don't know if menards poles are not strait or I just don't know what I am doing. Maybe I should hire a pro to get the pole level.