Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following:

Direct material costs..................................................................$1,000

Direct labor costs........................................................................$1,500

Actual overhead...........................................................................$1,980

Machine hours...............................................................................450

The accountant computed the inventory cost of this order to be $4.30 per unit. The annual budgeted overhead in dollars was:

a. $577,500.

b. $600,000.

c. $645,000.

d. $660,000.