The following manufacturing overheads are budgeted for the quarter. In addition to the above overheads the following costs will be incurred: (e) The company has signed a rental agreement for the production facility. The annual rental charge will be $360,000, which will be paid in equal monthly instalments. A security deposit amounting to $25,000 must also be paid in July. (f) Other operating costs including power, insurance, and administration expenses, which must be paid monthly, are expected to be $93,600 for the year.