2. Chataqua Can Company manufactures metal cans used in the food-processing industry. A case of cans sells for $50. The variable costs of production for one case of cans are as follows: Direct material Direct labo $15 12 Total variable manufacturing cost per caese........ Variable selling and administrative costs amount to $1 per case. Budgeted fixed manufacturing overhead is $800,000 per year, and fixed selling and administrative cost is S75,000 per year. The following data pertain to the company's first three years of operation Year 1 Year 2 Year 3 Planned production (in units.. 80,000 80,000 80,000 Finished-goods inventory (in units), January Actual production (in units80,000 80,000 80,000 Sales (in unis)... 80,000 60,000 90,000 Hinished-goods inventory (in units), December 31 Actual costs were the same as the budgeted costs 0 20,000 0 20,000 10,000