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Question A2 Premium Clubs Ltd manufactures a range of sports equipment. In particular it is sub-contracted to manufacture the shafts and heads for 'high end' golf clubs labelled to a major international brand. Machining capacity for these two specialist components is limited to 16,200 machine hours per month. Production costs are: Variable cost per unit Fixed costs per unit Shaft E 50 130 80 2,000 units Head E 65 35 100 1,600 units Monthly production requirements Fixed overhead rate is 5.00 per machine hour. Premium Clubs Ltd is itself able to access these two components at the exact same specification from a small local craft manufacturer for: Shafts E92 Heads 120 . Required: Calculate the total monthly cost for Premium Clubs Ltd to meet its monthly (10) production requirements, whether manufactured in-house or by buying externally