Bright Paint Company manufactures architectural coatings and paints. Growing in the last 10 years, the company became the exclusive paint supplier for well-know retailors like Canadian Tire. Warehousing facilities were added to increase capacity and ease of distribution. The three main products of paints they offer have the following operating results for the current fiscal year: Sales Target Price Product Quantity A B 1,600 8,000 C 800 $ 296.00 308.60 213.50 Actual Price $ 297.00 266.60 321.00 Difference $ 1.00 (42.00) $ 107.50 At 150% of the product's total manufacturing cost, Bright Paint Company sets the target price of each product. It appears that the company was able to sell Product C at a much higher price than the target price of the product and lost money on Product B. The CEO, John Pearson, plans to promote Product C much more aggressively and phase out Product B. Since the actual selling price of Product C was almost 50% higher than the target price, while the firm was forced to sell Product B at a price below the target price, this would suggest to him that Product C has the greatest potential of success among the company's three products. When it comes to the budgeted and actual factory overhead for the current year, they are both equal to $747,800. In addition, the actual units sold for each product also are the same as the budgeted units. Assume the company uses direct labor dollars to assign manufacturing overhead costs. The direct materials and direct labor costs per unit for each product are: Direct materials Direct labor Product A $ 61.00 31.00 Total prime cost $ 92.00 Product B $ 125.40 23.00 $ 148.40 Product C $ 76.00 16.00 $ 92.00