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Belmain Co. expects to maintain the same inventories at the end of 2017 as at the beginning of the year. The total of all

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Belmain Co. expects to maintain the same inventories at the end of 2017 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Production costs: Direct materials Direct labor Factory overhead Estimated Fixed Cost Estimated Variable Cost (per unit sold) $22 14 $236,500 11 Selling expenses: Sales salaries and commissions Advertising 49,200 16,600 Travel 3,700 Miscellaneous selling expense 4,100 5 4 Administrative expenses: Office and officers' salaries Supplies Miscellaneous administrative expense Total 48,000 5,900 2 5,600 $369,600 2 $60 It is expected that 5,940 units will be sold at a price of $200 a unit. Maximum sales within the relevant range are 7,000 units. Progress: 1/1 items Check My Work

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