Figure 8-3 Roaming Vehicles Company Manufactures Buggies. Manufacturing a Buggy Takes 20

Figure 8-3
Roaming Vehicles Company manufactures buggies. Manufacturing a buggy takes 20 units of wood and 1 unit of steel. Scheduled production of buggies for the next two months is 500 and 600 units, respectively. Beginning inventory is 4,000 units of wood and 30 units of steel. The ending inventory of wood is planned to decrease 500 units in each of the next two months, and the steel inventory is expected to increase 5 units in each of the next two months.
-Moriah Manufacturing Company expects to incur the following per unit costs for 1,000 units of production: Direct materials 3 lb. @ $5 = $15
Direct labor 1 hr @ $6 = $6
Variable overhead 75% of direct labor costs
Fixed overhead 50% of direct labor costs
What is the total amount of overhead included in the overhead budget?

A) $4,500
B) $3,000
C) $11,250
D) $7,500