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Assume that during the past month. Eineway produced 10,000 cartons of highlighters. Highlighters has a translucent barrel and cap with a visible ink supply for

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Assume that during the past month. Eineway produced 10,000 cartons of highlighters. Highlighters has a translucent barrel and cap with a visible ink supply for see through colour. The special fluorescent ink is fade and water resistance. Each carton contains 100 boxes of markers and each box contains five markers. The markers come in boxes of one of five fluorescent colours- orange, blue, yellow, green and pink and in a five colour set. The standard cost for one carton of 500 markers is as follows: Standard Manufacturing Cost Elements Quantity Price Cost Direct materials Tips (boxes of 500 Translucent barrels and caps (boxes of 500 Fluorescent Ink (5 litre container) $32.00 500 500 Slitre X $0.03 X $0.09 X $6.40 = $15.00 $45.00 39.00 Total direct material Direct labour Overhead Total cost of production 0.25 hours x 0.25 hours X $48.00 = $92.00 $2.25 $12.00 = $106.25 During the month, the following transactions occurred in manufacturing 10,000 cartons of highlighters: 1) Purchased 10,000 boxes of tips for $148,000,($14.80 per 500 tips), Purchased 10,200 boxes of translucent barrels and caps for $453,900 ( $44.50 per 500 barrels and caps) and purchased 9,900 containers of fluorescent ink for $328,185 ( $33.15 per five litre container). 2) All materials purchased during the period were used to make markers during the period. 3) A total of 2,300 direct labour hours were worked at a total labour cost of $20, 240 ( an average hourly rate of $8.80) 4) The variable manufacturing overhead incurred was $34,600 and the fixed overhead incurred was $84,000 5) The manufacturing overhead rate of $48.00 is based on a normal capacity of 2,600 direct labour hours. The total budget at this capacity is $83,980 fixed and $40,820 variable. Required: a) Calculate the total actual cost incurred b) Calculate the total standard costs for the actual quantity produced

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