Storewell Industries Ltd. manufactures standard heavy duty steel storage racks for industrial use. Each storage rack is sold for 2750 each. The company produces 10,000 racks per annum. Relevant cost data per annum are as follows: Budget Cost Component Direct Material Direct Labour Machine Setup Mechanical Assembly Actual Actual Cost p.a. 20,00,000 10,00,000 1,50,000 30,00,000 5,00,000 sq. ft. 5,20,000 sq. ft. 1,00,000 hrs 15,000 hrs. 200,000 hrs.200,000 hrs 90,000 hrs 15,000 hrs