Solo Company Has Developed Cost Formulas for the Drivers of the Following

Multiple Choice

Solo Company has developed cost formulas for the drivers of the following production activities: What is the budgeted inspection cost for 20 setups?
$$\begin{array} { l l r r } \text { Driver } & \text { Activity } & \text { Fixed } & \text { Variable } \\\text { Labour hours } & \text { Materials } & - 0 - & 40 \\\text { Labour hours } & \text { Labour } & - 0 - & 20 \\\text { Machine hours } & \text { Maintenance } & 20,000 & 16 \\\text { Machine hours } & \text { Machining } & 100,000 & 4 \\\text { Number of setups } & \text { Inspections } & 60,000 & 400 \\\text { Number of setups } & \text { Setups } & - 0 - & 600 \\\text { Number of purchase orders } & \text { Purchasing } & 150,000 & 6\end{array}$$

A) $60,000
B) $68,000
C) $160,000
D) $330,000