Problem 23-1A Costello Corporation manufactures a single product. The standard cost per unit of product is shown below Direct materials-1 pound plastic at $6.33 per pound Direct labor-2.50 hours at $11.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit 6.33 27.50 13.75 16.25 $63.83 The predetermined manufacturing overhead rate is $12 per direct labor hour ($30.00 2.50). It was computed from a master manufacturing overhead budget based on normal production of 14,000 direct labor hours (5,600 units) for the month. The master budget showed total variable costs of $77,000 ($5.50 per hour) and total fixed overhead costs of $91,000 ($6.50 per hour). Actual costs for October in producing 4,000 units were as follows Direct materials (4,140 pounds) Direct labor (9,880 hours) Variable overhead Fixed overhead 26,827 110,952 87,118 34,922 $259,819 Total manufacturing costs The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore can be ignored