Lansing Corporation provides household painting services. During June, its busiest month, Lansing had total direct labor hours of 20, 000 and total costs of $274, 000. During December, its slowest month, the company had direct labor hours of 12, 500 and total costs of $214, 000. The company is planning for 16, 000 direct labor hours in July. How many dollars should the company budget for fixed costs during July? a. $114, 000 b. $162, 000 c. $242, 000 d. $251, 500 The overhead application rate is calculated by: a. Dividing the estimated factory overhead by the estimated application base