Question 3 Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $8.00 per pound $ 8.00 Direct labor-1.0 hours at $11.30 per hour 11.30 Variable manufacturing overhead 7.00 Fixed manufacturing overhead 7.00 Total standard cost per unit $33.30 The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($14.00 # 1.0). It was computed from a master manufacturing overhead budget based on normal production of 5,400 direct labor hours (5,400 units) for the month. The master budget showed total variable costs of $37,800 ($7.00 per hour) and total fixed overhead costs of $37,800 ($7.00 per hour). Actual costs for October in producing 3,000 units were as follows. Direct materials (3,120 pounds) $ 25,272 Direct labor (2,850 hours) 32,775 Variable overhead 31,918 Fixed overhead 12,182 Total manufacturing costs $102,147 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