Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 2022 follow: Requirements for each finished component: RM 1 RM 2 RM 3 Direct labor Product information:: Sales price Sales (units) Estimated beginning inventory (units) Desired ending inventory (units) Cost per pound Estimated beginning inventory in pounds Desired ending inventory in pounds Finished Components C12 057 10 pounds 8 pounds 0 4 pounds 2 pounds 2 hours $ 150 12,000 400 300 1 pound 3 hours $ 220 9,000 150 200 Direct Materials Information RM1 $ 2.00 3,000 4,000 RM2 $2.50 1,500 1,000 RM3 $ 0.50 1,000 1,500 The firm expects the average wage rate to be $25 per hour in 2022. Spring Manufacturing uses direct labor hours to apply overhead. Each year the firm determines the overhead application rate for the year based on budgeted direct labor hours for the year. The firm maintains negligible Work-in-Process Inventory and expects the cost per unit for both beginning and ending inventories of finished products to be identical. Factory Overhead Information $10,000 Indirect materials-variable Miscellaneous supplies and tools-variable Indirect labor variable Supervision-fixed Payroll taxes and fringe benefits-variable) Maintenance costs-fixed 5,000 40,000 120,000 250,000 20,000