Company Beta produces and sell yo-yos, and the company has received an order of 10,000unitsofitsproductduringthecurrentyear of2020.Forallocatingthe manufacturingoverhead(i.e.,indirectcostpool) CompanyBeta usesthedirect machine-hours (i.e., cost-allocation base).The production of each batch of 1,000 yo-yos takes 10 labour-hours at a rate of $20 per labour hour and 25 machine-hours. Each batch of 1,000 yo-yos consumes $200 indirectmaterial.Thebudgetedindirect manufacturingcostsfor CompanyBetafor the current year of 2020is $1,000,000 and the production budget is of 20,000,000 yo-yos.

Required:

(a)Calculate the indirect manufacturing costs, and the total manufacturing costs of this order of 10,000 units of yo-yos.

(b)Considering the industry benchmark for indirect manufacturing costs for similar orders is 50%ofdirect manufacturing labour,identifywhether theorderof 10,000 units has an indirect manufacturing costs lower or higher than a similar order usingtheindustrybenchmark.Brieflyexplainwhatcouldcausea differencebetween thisorder andtheindustrybenchmarkforthe indirect manufacturing costs.