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1.Production estimates for August are as follows:Estimated inventory (units), August 112,000Desired inventory (units), August 319,000Expected sales volume (units), August75,000For each unit produced, the direct materials requirements are as follows:Material A ($5 per lb.)3 lbs.Material B ($18 per lb.)1/2 lb.The total direct materials purchases (assuming no beginning or ending inventory of material) of Materials A and B required for August production is-$1,080,000 for A; $648,000 for B2.For February, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising expenses are $90,000; shipping expenses total 2% of sales; and miscellaneous selling expenses are $2,500 plus 1/2 of 1% of sales. Total selling expenses for the month of February are -$241,0003.At the beginning of the period, the Assembly Department budgeted direct labor of $110,000, direct materials of $170,000, and fixed factory overhead of $28,000 for 8,000 hours of production. The department actually completed 10,000 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting?