Item	Standard cost	$ amount
Variable overhead	0.6 hr @ $8.00/hour	$4.80
Fixed overhead	0.9 hr @ $4.00/hour	3.60
Direct materials	2.0 kg@ $3.25/kg	6.50
Direct labour	0.7 hr @ $12.50/hour	8.75
Standard cost per unit		$23.65

During the last fiscal year ended December 31, 2021, Kapahulu reported the following information in connection with the production of this table lamp:

1. Actual VOH incurred: $494,000

2. Actual FOH incurred: $344,000

3. Production: 100,000 units

4. Direct material purchases: 210,000 kg at $3.05/kg

5. Beginning inventory of direct material: 18,000 kg (carried at standard cost).

6. Total direct labour used: 71,000 hours, at a cost of $923,000

No ending inventory

The companys factory can produce 120,000 table lamps a year but a denominator level was set at 90,000 units for the year ended December 31, 2022. Cost driver is direct labour hours.