Commerce Corporation has a high probability of operating at 42,000 activity hours during the upcoming period, and lower probabilities of operating at 32,000 hours and 52,000 hours. The company's flexible budget revealed the following: 32,000 Hours 42,000 Hours 52,000 Hours Variable costs $ 176,000 $ 231,000 $ 286,000 Fixed costs 920,000 920,000 920,000 If Commerce operated at 37,000 hours, its total budgeted cost would be: