Under a contract with the provincial government, ChemLabs Ltd. analyzes the chemical and bacterial composition of well water in various municipalities in the interior of British Columbia. The contract price is $26.45 per test performed. The normal volume is 10,000 tests per month. Each test requires two testing kits, which have a standard price of $3.55 each. Direct labour to perform the test is 10 minutes at $22.80 per hour. At normal volume, the overhead costs are as follows: Variable overhead costs Indirect labour $16,500 Utilities 3,500 Labour-related costs 16,000 Laboratory maintenance 10,000 $46,000 Fixed overhead costs