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The Fabric Plant produces three types of fabric: Standard, Deluxe and Luxury. Each fabric is totally different and has its own production operation. Each fabric's production operation occurs in different locations in the Fabric Plant. Each production operation has two phases: Weaving and Dyeing. In Weaving, yarn is weaved into fabrics with different motifs. In Dyeing, fabrics are dyed and rolled into 50-yard per bolt. The Fabric Plant transfers all three types of fabric to the Bedding Plant at cost. The Fabric Plant and the Bedding Plant used normal costing system. Both plants used plantwide overhead rate based on direct labour hour, Fabric Plant Budgeted Actual Manufacturing Overhead* $600,000 $526,500 Direct labour hours 100,000 hours Weaving D yeing Standard 12,000 hours 10,500 hours Deluxe 16,000 hours 14,000 hours Luxury 24,000 hours 21,000 hours * Assume 50% fixed for both budgeted and actual amounts Calvin also found the following actual costs of production relating to Deluxe. Weaving 100,000 yards Dyeing ? bolts Fabric: Deluxe Output Production cost Direct material Direct labour Manufacturing overhead $800,000 $80,000 $20,000 $70,000 Calvin was concerned about the waste and the inefficiency that he observed in the Fabric Plant. He then developed a standard cost sheet for Deluxe in the Dyeing phase as shown below. The Fabric Plant: Dyeing From Weaving (50 yards x $10.00 per yard) Direct materials (30 litres x $0.30 per litre) Direct labour (5 hours x $5.50 per hour) Manufacturing overhead (5 hours x $5.50 per hour) Standard Cost Per Bolt $500,00 $9.00 $27.50 $27,50 Required (All workings should be detailed and clearly presented.) (a) What is the production cost per bolt for Deluxe fabric? (6 marks)