overhead budgets King Tire Co.'s budgeted unit sales for the year 2016 were: Passonger-car tires Truck tires 120,000 25,000 The budgeted selling price for truck tires was $200 per tire, and for passenger car tires it was $65 per tire. The beginning finished oods inventories were expected to be 2,000 truck tires and 5,000 senger tires, for a total cost of $326,478, with desired ending respectively, with a total cost $400,510. There was no anticipated beginning or ending work- in-process inventory for either type of tire. The standard materials quantities for each type of tire were as follows Similar to Self-Study Problem Passenger Truck Car 30 lb 10 lb Steel belts 4 lb 1.5 lb The purchase prices of rubber and steel were $2 and $3 per pound, respectively. The desired ending inventories for rubber and steel were 60,000 and 6,000 lb, respectively. The estimated begin- ning inventories for rubber and steel were 75,000 and 7,000 lb, respectively. The direct labor hours required for each type of tire were as follows: Molding Finishing Department Department Truck tire Passenger car tire 0.25 0.10 0.15 0.05 The direct labor rate for each department is as follows: $15 per hour Molding Department Finishing Department .........................$13 per hour