QUESTION 2 [15 Marks] Pepper Industries manufactures a wide line of mugs which are sold to specialty gift stores. The sales manager has received a request to price a special order from a large consultancy offering to purchase 50 000 mugs that it plans to use for promotional purchases. The sales manager asked the factory accountant to develop an estimate of the cost to fill this order. The production manager advises that there is plenty of idle capacity to fill this order. The factory accountant replied by submitting Table 1 to assist with the decision. Table 1 ITEM Direct materials - 50 000 @ R0,66 each Direct labour - 50 000 @ R0,23 each R33 000 R11 500 MBL4807 OCTOBER NOVEMBER 2021 R7 500 Variable manufacturing overhead-50 000 @ RO, 15 each Fixed manufacturing overhead - 50 000 @R0,10 each Design costs R5 000 Shipping costs Other administrative costs Total order cost R1 800 R3 600 R1 500 R63.900 ADDITIONAL INFORMATION . All variable costs are incremental costs relating to this order. The charge for fixed manufacturing overhead is the standard fixed overhead amount that Pepper Industries allocates to all mugs it produces. The manufacturing overhead relates to factory equipment that is used to make the various products. It will not change in the short run. . The customer has stated they do not need any designs on the product. . The shipping costs are the estimated costs of shipping the completed product to the customer. . The other administrative costs represent the cost that is added to each other to reflect fixed administrative costs at Pepper Industries that will hange in the short run. Required: Calculate the relevant cost for the special order