Townsend Incorporated has set the following standards for one unit of product:

Direct material

Quantity: 8.2 pounds per unit

Price: $12.50 per pound

Direct labour

Quantity: 8 hours per unit

Rate: $25 per hour

Actual costs incurred in the production of 3,000 units were as follows

Direct material: $246,000 ($12.00 per pound)

Direct labour: $454,500 ($22.50 per hour)

All materials purchased were consumed during the period.