Microsoft Corporation operates software development centers globally. In June 2030, the company incurs the following operating costs related to its software development:

• Development Center Rent: $30 million
• Software Development Labor: $50 million
• Research Materials: $15 million
• User Support Costs: $12 million
• Administration Overhead: $18 million

Labor costs are split between direct ($40 million) and indirect ($10 million).

Required:

• Calculate the total operating costs for Microsoft Corporation.
• Allocate administration overhead to the software development centers.
• Determine the cost per software license sold assuming 5 million licenses.
• Analyze the cost behavior of administration overhead in software development.
• Prepare an operating costing statement for Microsoft Corporation.