Montgomery Company Has Developed the Following Flexible Budget Formulas for Its

Montgomery Company has developed the following flexible budget formulas for its four overhead items:

Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours) ; however, this year 19,000 units were produced with the following actual costs:


-The total budgeted overhead for an expected activity level of 10,000 units is:

A) $139,400.
B) $64,400.
C) $124,000.
D) $12,400.
E) None of these.