Using Table 1 (traditional absorption costing), show how administrative expenses for bourbon -- $7,263 were calculated.

Table 1. OLD BLOOMFIELD INCOME STATEMENT UNDER TRADITIONAL ABSORPTION COSTING (in thousands) Bourbon Gin Vodka Total Sales $105,000 $39,000 $36.000 $180,000 Materials $31,500 $11,000 $11,750 $ 54,250 Labor 11,000 3.600 3,050 17,650 Production Overhead 37,800 13,200 14,100 65,100 Cost of Sales $ 80,300 $27,800 $28,900 $137,000 Gross Margin $ 24,700 $11,200 $ 7,100 $ 43,000 Advertising $ 3.000 $ 1,500 $ 1.400 $ 5,900 Commissions 5,250 1.950 1,800 9,000 Marketing - Other 5.221 1,939 1,790 8,950 Administrative 7,263 2,697 2,490 12,450 Total Expenses $ 20,734 $ 8,086 $ 7,480 $ 36,300 Operating Income $ 3,966 $ 3,114 IS 380) $ 6,700 Total Gallons 30.000 15,000 14,000 Total Cost (Material, $101,034 $35,886 $36,380 Labor, Overhead, General and Administrativel Cost/Gallon $3.37 $2.39 $2.60