Belmain Co. expects to maintain the same inventories at the end of 20Y7 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:

Line Item Description	Estimated Fixed Cost	Estimated Variable Cost (per unit sold)
Production costs:
Direct materials		$24
Direct labor		16
Factory overhead	$256,800	12
Selling expenses:
Sales salaries and commissions	53,400	5
Advertising	18,100
Travel	4,000
Miscellaneous selling expense	4,400	4
Administrative expenses:
Office and officers' salaries	52,200
Supplies	6,400	2
Miscellaneous administrative expense	5,980	3
Total	$401,280	$66

It is expected that 9,880 units will be sold at a price of $132 a unit. Maximum sales within the relevant rangeare 12,000 units.