The Brace Company produces and sells a single product with budgeted or standard costs as follows:

Inputs

Budgeted or

Standard quantity

per output

Cost per input

Cost per output

Direct materials

Direct labor

Factory overhead:

Variable

Fixed

Total

5 lbs

4 hours

4 hours

4 hours

$10

9

11

20

$50

36

44

80

$210

Overhead rates are based on 5,000 standard direct labor hours per month, i.e., this is the master budget denominator activity level. Desired ending inventory of materials is based on 10% of the next periods materials needed for production. Desired ending finished goods is based on 5% of next periods sales. Selling and administrative expenses include $40 per unit for variable costs and $50,000 per month for fixed costs. Unit Sales are budgeted as follows:

January

February

March

April

May

1,000

1,200

1,300

1,400

1.500

The budgeted sales price is $400 per unit. All sales are budgeted as credit sales. Past experience indicates that 75% are collected during the month of sale, 20% are collected in the following month, and 5% eventually become uncollectible. A 1% cash discount is allowed to customers who pay within the month the sale takes place. The budgeted units to be produced are 1,305.

Net sales dollars budgeted for March are