Ivanhoe Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants have provided the following data: Sales budget Product LN 35 Product LN 40 Expected volume in units 400,000 238,000 Unit selling price $31 $34 Production budget Desired ending finished good units 31,000 22,000 Beginning finished goods units 22,000 13,000 Direct materials budget: Direct materials per unit (kilograms) 2 3 Desired kilograms of ending direct materials 53,000 16,000 Beginning kilograms of direct materials 39,000 11,000 Cost per kilogram $2 $3 Direct labour budget Direct labour time per unit (hours) 0.50 0.70 Direct labour rate per hour $11 $11 Budgeted income statement Total unit cost $11 $19 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expenses budget. The latter shows selling expenses of $858,000 for product LN 35 and $390,000 for product LN 40, and administrative expenses of $517,000 for product LN 35 and $182,000 for product LN 40. Income taxes are expected to be 30%.