Schopp Inc. has been manufacturing its own shades for its tablelamps. The compan

Schopp Inc. has been manufacturing its own shades for its tablelamps. The company is currently operating at 100% of capacity.Variable manufacturing overhead is charged to production at therate of 70% of direct labor cost. The direct materials and directlabor cost per unit to make the lamp shades are $3.90 and $5.60respectively. Normal production is 38000 table lamps per year.