Costello Corporation manufactures a single product. The standard cost per unit of product is shown below.

Problem 25-1A Costello Corporation manufactures a single product. The standard cost per unit of product is shown below Direct materials-3 pound plastic at $6.49 per pound Direct labor-1.50 hours at $12.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit $19.47 18.00 10.50 10.50 $58.47 The predetermined manufacturing overhead rate is $14 per direct labor hour ($21.00 1.50). It was computed from a master manufacturing overhead budget based on normal production of 8,700 direct labor hours (5,800 units) for the month. The master budget showed total variable costs of $60,900 ($7.00 per hour) and total fixed overhead costs of $60,900 ($7.00 per hour). Actual costs for October in producing 3,900 units were as follows Direct materials (11,860 pounds) Direct labor (5,680 hours) Variable overhead Fixed overhead $80,055 69,637 62,242 21,818 $233,75.2 Total manufacturing costs The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored