Budgets and performance reporting Unit sales of Hoppington Company's electronic desk calculators is budgeted as follows for the first 4 months of 1993:

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January February March April 6,000 7,000 8,000 7,500 The ending inventory of calculators on December 31, 1992, is expected to be 2,000 units. The desired ending inventory of finished goods each month is 40 percent of next month's expected sales. Each calculator requires 5 hours of direct labor costing $9 per hour. Fixed overhead of $1,879,200 per year is allocated equally to each month. Estimated variable overhead per direct labor hour is: Indirect materials Indirect labor Fringe benefits Payroll taxes $ .50 1.20 1.70 .60 1.10 Other expenses By the end of January, the company had produced 7,000 units using 35,350 hours of labor. Actual overhead was as follows: Indirect materials Indirect labor Fringe benefits Payroll taxes Other expenses Fixed overhead $ 17,200 40,000 60,000 21,300 36,100 $174,600