Dew Company employs standard costing and applies overhead based upon machine labor hours. Monthly production is scheduled at 500 units. Standard and actual data for the month is as follows:

Standards
Variable overhead	4 hours @ $10 per hour
Fixed overhead	4 hours @ $12 per hour

Actual
Units produced	550 units
Machine hours	2,375 hours

The budgeted hours for the month are:

	A.	none of these
	B.	2,375
	C.	2,000
	D.	4,400
	E.	2,200