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 $6.35 per pound Direct labor-1.00 hours at $12.00 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit $6.35 12.00 7.50 4.50 $30.35 The predetermined manufacturing overhead rate is $12 per direct labor hour ($12.00 1.00). It was computed from a master manufacturing overhead budget based on normal production of 5,200 direct labor hours (5,200 units) for the month. The master budget showed total variable costs of $39,000 ($7.50 per hour) and total fixed overhead costs of $23,400 ($4.50 per hour). Actual costs for October in producing 3,800 units were as follows Direct materials (3,910 pounds) Direct labor (3,670 hours) Variable overhead Fixed overhead $ 25,806 45,214 32,146 15,484 $118,650 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