The production budgets for quarters 1 and 2 for a manufacturing company are as follows:

Quarter 1Quarter 2

Production (units)15,00020,000

Budgeted production costs$$

Direct materials180,000240,000

Production labour155,000195,000

Production overheads210,000240,000

The cost structure, which is expected to continue unchanged in quarter 3, is as follows:(ii) The variable cost elements are linear and vary in direct proportion to volume. (iii) There is a bulk purchase discount of 5% on materials if orders exceed $250,000 per quarter. The discount will apply to the purchase of all materials in that quarter. (iv). The company operates a JIT system for material purchases. (v) Fixed production overheads will increase by $20,000 per quarter at production output levels in excess of 22,000 units in a quarter. The budgeted production volume for quarter 3 is 23,000 units. Show the production cost budget for quarter 3.