1. Ibrahim & Sons manufactures two products - A and C. In the year 2021 the company produced 540 units of A and 460 units of C, incurring a total cost of $720,000. Analysis of this total cost shows that 80% of it are variable. A further review shows that 55% of these variable costs vary in line with the number of product A manufactured, while the rest relates to the number of product C produced. The budget for the year 2022 is now being prepared using an incremental budgeting method. The following additional information is available for 2022: All costs will be 4% lower than the average paid in 2021. Efficiency levels will remain unchanged. Expected output of products A and C will be 640 units and 360 units respectively, in 2022. Required: What is the budgeted total variable costs of products A and C for the year 2022?