Answer:
A
Explanation:
In this question, we will calculate the appropriate total budget for the department.
We employ a mathematical approach as follows;
direct labor =$136,000
direct material =$156,000
fixed factory overhead = $10,100
total cost will be ---- 136,000 + 156,000+ 10,100 = $302,100 (for 7,000 hrs of production)
the cost of 1 hr of production is 302,100/7,000= $43.16
so in order to extend it to 10,300 we need (10,300-7,000) = 3,300 more hrs of production
3,300 * 43.16 = 142,419
adding this to 302,100 + 142,419 = $444,519
