Mylenses Incorporation ("the company") manufactures spectacle lenses. The company adopts normal costing and assigns manufacturing overheads ("MOH") based on direct labour hours. The budgeted fixed MOH, budgeted variable MOH and budgeted direct labour hours are $14,000,000, $10,500,000 and 700,000 hours respectively.

The company manufactures two types of lenses, namely photocarbonate lenses ("PCB") and polarised lenses ("PL"), using a monthly capacity of 28,000 machine hours and 60,000 direct labour hours. Below is the cost information of the two products: