Accepting Business at a Special Price Forever Ready Company expects to operate at 90% of productive capacity during July. The total manufacturing costs for Jally for the production of 36,900 batteries are budgeted follows: Direct materials $579,600 Direct labor 213,100 Variable factory overhead 59.000 Fixed factory overhead 119,000 Total manufacturing costs 3971,390 The company has an opportunity to submit a bid for 2,000 batteries to be delivered by July 1 to a government agency, If the contract is obtained it in anticipated that the additional activity will not interfere with normal production during July or increase the selling or adminstrative expenses.