Sandhill Co.sells remote control airplane engines, which carry a one-year warranty. If a customer brings in a defective engine, he replaces the engine with a new one from his inventory. Sandhill estimates that 2% of sales are defective. As of January 1, the Warranty Liability had a credit balance of $400.

Sandhill provided the following sales and warranty cost information for his year end of December 31.

Sales price per engine $130

Total sales 1,010 units

Actual warranty costs $1,215

Collapse question part

(a)

Calculate the estimated warranty expense for the year.

Estimated warranty expense $