Hi,

I have a problem in Managerial Accounting .

Ace Manufacturing Company began business in January of 2012. During the year, Ace purchased raw materials costing $200,000, incurred direct labor costs of $300,000; and paid rent of $4,000 per month for a building used to manufacture 20,000 units of product. Ace also paid a salary of $2,000 per month for a factory manager. Other employees were paid $15 per hour. Ace sold 10,000 of the units for $200 each, using a sales force paid $1,000 per month and 10% of sales.

Before the business opened, Ace expected total factory overhead costs of $72,000 and 18,000 direct labor hours. At the end of the year, Ace