Shane Industries Prepared a Fixed Budget of 60000 Direct Labor

Multiple Choice

Shane Industries prepared a fixed budget of 60000 direct labor hours with estimated overhead costs of $300000 for variable overhead and $90000 for fixed overhead. Shane then prepared a flexible budget at 57000 labor hours. How much is total overhead costs at this level of activity?

A) $285000
B) $375000
C) $370500
D) $390000