Vaughn Wings, Inc. manufactures airplanes for use in stunt shows. Vaughn's factory is highly automated, using the latest in robotic technology. To keep costs low, the company employs as few factory workers as possible. Since each plane has different features (such as its shape, weight, and color), Vaughn uses a job order costing system to accumulate product costs. At the end of 2016, Vaughn's accountants developed the following expectations for 2017 based on the marketing department's sales forecast: Budgeted overhead cost Estimated machine hours Estimated direct labor hours Estimated direct materials cost $1,520,000 $1,052,000 52,000 12,000 Vaughn's inventory count, completed on December 31, 2016, revealed the following ending inventory balances Raw Materials Inventory Work in Process Inventory Finished Goods Inventory 250,000 $626,000 $2,160,000 The company's 2017 payroll data revealed the following actual payroll costs for the year: Annual Total Hours Number Wage Rate Salary per Worked per Employed per Hour Employee Employee Job Title President and CEO Vice president and CFO Factory manager Assistant factory manager Machine operator Security guard, factory Forklift operator Corporate secretary Janitor, factory $225,000 $177,000 $40,100 $31,400 $14.5 2,250 $21,000 $7.5 2,000 $35,900 2,150 The following information was taken from Vaughn's Schedule of Plant Assets. All assets are depreciated using the straight-line method. Salvage Value Useful Life $150,000 20 Years $125,000 30 Years $20,000 12Years Plant Asset Factory building Administrative office Factory equipment Purchase Price $4,000,000 650,000 $2,000,000 Other miscellaneous costs for 2017 all paid in cash included