Redmar, Inc. manufactures custom campers. They use a costing system with one rate of manufacturing overhead. In this system, they apply manufacturing overhead based on the direct labor hours. Below are the estimated costs (both period and product), estimated number of campers to be produced this year, and estimated direct labor hours per camper for the year-ended 2018 Cost Indirect Production Labor Factory Insurance Factory Utilities Marketing expense Production Supervisor Salaries of salespeople Direct Labor Depreciation on sales office Direct materials Factory Rent Depreciation of factory Amount 75,000 $ 15,400 $ 30,800 $57,700 $ 62,300 $122,500 $ 262,000 25,000 $225,000 $69,800 $124,300 Estimated campers to be manufactured in 2018 400 Estimated direct labor hours per camper 25