My Tea Brew Ltd. is located in Toronto, Ontario. The company produces small batch, handcrafted tea blends and infusions using the best quality teas and all natural ingredients. The company uses a standard costing system, with the standard variable and fixed manufacturing cost per tea box details shown below:

Standard Quantity/Hour

Standard Price/Rate

Direct materials

0.18 kilograms

$42.40 per kilogram

Direct labour

0.40 hours

$28.50 per hour

Variable manufacturing overhead

0.25 hours

$5.40 per hour

Fixed manufacturing overhead

0.50 hours

$1.20 per hour

During February 2021, the company produced 783 tea boxes and incurred the following costs:

- Purchased and used 118 kilograms of raw materials at a cost of $43.00 per kilogram. There were no raw materials in inventory at the beginning of the month.

- Worked 315 direct labour hours at a cost of $29.20 per hour.

- Incurred total variable manufacturing overhead costs $1,100 and fixed manufacturing overhead costs $450.