Bixley Company Budgets Variable Manufacturing Overhead at 50% of Its

Multiple Choice

Bixley Company budgets variable manufacturing overhead at 50% of its direct labour costs.The company estimates that 20,000 direct labour hours will be used at an average rate of $11.50 per hour.Bixley's fixed manufacturing overhead costs are budgeted at $90,000 for the year.The company's budgeted manufacturing overhead for the year is

A) $320,000.
B) $230,000.
C) $205,000.
D) $115,000.