Osborne Ltd manufactures a wide range of leather suitcases. The following costs are expected to be incurred by the company during May:

Indirect labour cost $28,000 Direct labour time 10,000 hours Indirect labour cost $28,000 Direct labour time 10,000 hours Depreciation on equipment $20,000 Rent and Rates $13,000

Direct labour costs $98,000 Heating, lighting and power $ 4,000

Machine time 8,000 hours

Indirect materials $5,000

Consumables $ 2,000

Direct materials used $50,000 Production estimate 1,000 suitcases

Total indirect costs are: