Figure 11-3

Multiple Choice

Figure 11-3. Montgomery Company has developed the following flexible budget formulas for its four overhead items:
Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours) ; however this year 19,000 units were produced with the following actual costs:
Refer to Figure 11-3.Prepare an overhead budget for the expected activity level of 10,000 units.The total budgeted overhead is

A) $139,400.
B) $64,400.
C) $124,000.
D) $12,400.
E) none of these.