Palomar Battery Company expects to operate at $82\%$ of full capacity during April. The total manufacturing costs for April for the production of $29,520$ batteries are budgeted as follows:Line Item DescriptionAmountDirect materials$$337,200$Direct labor$124,000$Variable factory overhead$34,736$Fixed factory overhead$103,320$Total manufacturing costs$$599,256$The company has an opportunity to submit a bid for $3,000$ batteries to be delivered by April $30$ to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during April or increase the selling or administrative expenses.