7. Tows Ltd has prepared the following flexible budget for the coming year. The Budgeted level of activity is 7,500 units.

Sales 250,000 Direct material 75,000 Direct labour 60,000 Variable overheads 30,000 Fixed overheads 45,000 Profit 22,500

If the budget is flexed to a level of activity of 10,000 units, what would the total budgeted cost be? a) 280,000 b) 265,000 c) 123,750 d) 168,750