Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows: Manufacturing costs (per unit based on expected activity of 24,000 units or 36,000 direct labor hours): Direct materials (2 pounds at $20) Direct labor (1.5 hours at $90) Varlable overhead (1.5 hours at $20) Fixed overhead (1.5 hours at $30) $ 40.00 135.00 30.00 45.00 Standard cost per unit $250.00 Budgeted selling and administrative costs: Variable Fixed $5 per unit $1,800,000 Expected sales activity: 20,000 units at $425.00 per unit Desired ending inventories: 10% of sales Assume this is the first year of operations for the Bellingham plant. During the year, the company had the following activity: Units produced Units sold Unit selling price Direct labor hours worked Direct labor costs Direct materials purchased Direct materials costs Direct materials used Actual fixed overhead Actual variable overhead Actual selling and administrative costs 23,000 21,500 420 34,000 $3,094,000 50,000 pounds $ 1,000,000 50,000 pounds $ 1,080,000 $ 620,000 $ 2,000,000