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Ping Industries' master budget was based on a level of activity of producing and selling 40,000 golf balls with a retail price of \$50 per unit. The company has the capacity to produce 60,000 units. Variable labor costs were budgeted to be \$500,000. Variable material costs were budgeted to be \$320,000 and variable overhead costs were budgeted to be \$520,000. Annual fixed costs are budgeted to be \$750,000. The company actual sold 48,000 golf balls.

What should the flexible budget fixed costs be under the new activity level?









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