Basic Sound, Inc. expects variable manufacturing costs to fluctuate with direct labor hours. Management expects indirect labor costs to be $1.70 per hour, indirect materials to be $2.60 per hour, utility costs to be 1.40 per hour and machine maintenance costs to be $0.40 per hour. Quarterly manufacturing fixed costs are expected to include FCC inspections of $2,000, depreciation of $5,000, property taxes of $2,000, and insurance of $458.