Effect on costs of volume changes Capilano Containers Company specializes in making high-quality customized containers to order. Its agreement with the labor union ensures employment for all its employees and a fixed payroll of $80,000 per month, including fringe benefits. This payroll makes available 4,000 labor hours each month to work on orders the firm receives. The monthly wages must be paid even if the workers remain idle because of a lack of work. If additional labor hours are required to complete jobs, overtime costs $30 per labor hour.

Each job requires 4 labor hours for machine setup and 0.05 labor hour per container. Variable costs are $1.60 per container for materials and $8.00 per labor hour for manufacturing overhead expenses. In addition, the firm must pay $20,000 per month for selling, general, and administrative expenses, and $36,000 per month lease payments for machinery and physical facilities.

In April, the firm won 90 orders, of which 60 were for 800 containers each and 30 for 1,600 containers each.

Required

Determine the total costs for April.