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The actual activity level was 110000 direct labor hours how

Question - Caldwell Manufacturing Company prepared a static budget of 120,000 direct labor hours, with estimated overhead costs of $480,000 for variable overhead and $90,000 for fixed overhead. The actual activity level was 110000 direct labor hours so Caldwell prepared a flexible budget at 110,000 labor hours. How much are total overhead costs at this flexible budget level of activity?

a. $480,000

b. $522,500

c. $530,000

d. $570,000

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Accounting Basics: The actual activity level was 110000 direct labor hours how

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