Figure 11-2

Figure 11-2. Lawson,Inc.produces plastic grocery bags.Lawson has developed a static budget for the month of July based on 8,000 direct labor hours.During the quarter,the actual activity was 9,000 direct labor hours.Data for July are summarized as follows:
Refer to Figure 11-2.What is the flexible budget for July?

A) $142,000
B) $159,000
C) $171,000
D) $165,000
E) none of these