Problem 11-1A 7 Your answer is partially correct. Try again Rogen Corporation manufactures a single product. The standard Cost per unit of product is shown below Direct materials-1 pound plastic at $8 per pound 8.00 Direct labor-0.50 hours at $11.15 per hour 5.58 Variable manufacturing overhead 2.75 Fixed manufacturing overhead 5.25 Total standard cost per unit $21.58 The predetermined manufacturing overhead rate is $16 per direct labor hour ($8.00 0.50). It was computed from a master manufacturing overhead budget based on normal production of 2,500 direct labor hours (5,000 units) for the month. The master budget showed total variable costs of $13,750 ($5.50 per hour) and total fixed overhead costs of $26,250 ($10.50 per hour). Actual costs for October in producing 3,900 units were as follows. 32,886 Direct materials (4,060 pounds) 20,038 Direct labor (1,750 hours) Variable overhead 21,838 Fixed overhead 11,362 $86,124 Total manufacturing costs 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