Manufacturing Cost Elements 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 Total direct material Direct labour Overhead Total cost of production 0.25 hours X $9.00 0.25 hours X $18.00 = $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 lab 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