Lakeside Bakery Makes Pies

Multiple Choice

Lakeside Bakery makes pies. Each pie requires ¾ of a direct labor hour. The variable overhead rate is $0.60 per direct labor hour. Lakeside's estimated fixed overhead is $400,000. Lakeside budgets pie production at 500,000 pies for the upcoming year. What is Lakeside's total estimated overhead?

A) $225,000
B) $300,000
C) $525,000
D) $625,000
E) $700,000