=+8-29 K Special order OBJECTIVE 2 Kingston Ltd produces cricket bats for kids that it sells for $32 each. At capacity, the company can produce 50000 bats a year.

The costs of producing and selling 50000 bats are as follows:

Cost per bat Total costs Direct materials $12 $600 000 Direct manufacturing labour 3 150 000 Variable manufacturing overhead 1 50 000 Fixed manufacturing overhead 5 250 000 Variable selling expenses 2 100 000 Fixed selling expenses 4 200 000 Total costs $27 $1 350 000