Vermont's Best Maple Syrup Inc. is a small business selling a single product, pure| Vermont maple syrup, since 1939. Their best-seller is the one-pint jug. The company's relevant range of production is between 600,000 and 800,000 jugs a year. Within the relevant range, variable costs per jug and total annual fixed costs remain constant. The company has the following data from its standard cost system. Standard Costs Variable costs per jug: Direct materials (5 gallons at $1.40 per gallon of maple tree sap) Direct labor (0.04 direct labor hour at $16.50 per hour) $7.00 $0.66 Variable mfg. overhead (0.04 direct labor hour at $19 per hour) $0.76 Selling and administrative expenses $1.90 Fixed costs per year: Mfg. overhead $934,400 Selling and administrative expenses $680,000 The planning budget income statement is based on the expectation of selling 730,000 jugs of maple syrup. The budgeted selling price is $14.50 per jug.