Joe's Glass makes shot glasses. Joe and his accountant analyzed overhead costs for the plant assuming that overhead costs are driven by direct labor hours and came up with the following formula for predicting overhead costs in the firm:

Y=3$ (X) +$70,000

Next year the firm is expected to work 7,000 direct labor hours. Budgeted overhead costs would be:

		$ 70,000
		$ 9,000
		$ 77,000
		none of the items in this list of answers
		$ 21,000