During the first month of operations ended July $31,$ Heat Gear Inc. Inatufiachired $6,400$ hats, of which $5,700$ were sold. Operating data for the month are summarized as follaws:

Sales

$$104,000$

Manufacturing costs:

Direct materials

$$47,360$

Direct labor

$22,400$

Variable manufacturing cost

$12,160$

Fxed manufacturing cast.

$15,360$

$97,280$

Selling and administrative expenses:

Variabie

$$10,920$

Fixed

$5,200$

$16,120$

During August, Head Gear Inc. manufactured $4,000$ hats and sold $5,200$ hats. Operating data for August are summarized as follows:

Sales

$$104,000$

Manufacturing casts:

Direct materials

$$29,600$

Direct labor

$14,000$

Variable manufacturing cost

$7,600$

Fixed mantfacturing cost:

$15,360$

$66,560$

Selling and administrative experses.

variable

$$10,920$