ATR Corporation's Budgeted Product Costs for the Third Quarter of 20x2

Multiple Choice

ATR Corporation's budgeted product costs for the third quarter of 20x2 were based on an expected volume of 1,500 units. The budgeted unit costs appear below: Direct material $ 1.50
Direct labour 2.25
Variable overhead 4.25
Fixed overhead 3.00
Total $11.00
If ATR had a budgeted volume of 2,000 units, the total budgeted product cost for the third quarter of 20x2 would have been:

A) $22,000
B) $16,000
C) $20,500
D) None of the above