Boards manufactures two models of$$ surfboards, Basic and$$ Competition, in a facility in Southern California. In$$ fabrication, machine setup costs are driven by the number of$$ setups, machine maintenance and utility costs increase with the number of machine$$ hours, and indirect labor costs increase with direct labor hours. Facility rent and machine depreciation are$$ fixed, and are the basis of manufacturing capacity. Fixed costs are allocated equally to each unit$$ produced, regardless of model.$$ Currently, Bowman uses $60\%$ of its manufacturing capacity. The cost of unused capacity is not assigned to$$ products, but is expensed as a separate line item. For $2020,$ Bowman has budgeted the$$ following: