PJ Ltd is in an industry which is recovering from the 2008 recession. The directors of the company hope next year to be operating at 85% of capacity, although currently the company is operating only at 65% of capacity. 65% of capacity represents output of 10,000 units of the single product which is produced and sold. One hundred direct workers are employed on production for 200,000 hours in the current year. The flexed budgets for the current year are as follows: Capacity level 55% 65 % 75% K K K Direct materials 846,200 1,000,000 1,153,800 Direct wages 1,480,850 1,750,000 2,019,150 Production overhead 596,170 650,000 703,830 Selling and distribution overhead 192,310 200,000 207,690 Administration overhead 120,000 120,000 120,000 Prot in any year is budgeted to be 16273% of sales