Problem: At a volume of 10,000 direct labor hours, Grist Company incurs $30,000 in factory overhead costs, including $10,000 in fixed costs. Assuming that this activity is within the relevant range, if volume increases to 12,000 direct labor hours, the company can expect to incur total factory overhead costs of:
a $36,000
b $34,000
c $30,000
d $24,000