Lawson, Inc. produces plastic grocery bags. Lawson has developed a static budget for the month of July based on 8,000 direct labor hours. During the quarter, the actual activity was 9,000 direct labor hours. Data for July are summarized as follows:

	Static budget (8,000 hours)	Actual costs (9,000 hours)
Direct materials cost	$ 96,000	$118,000
Power	40,000	47,000
Salary of plant supervisor	6,000	6,000
Total	$142,000	$171,000

Refer to Figure 11-2. What is the flexible budget for July?

		$142,000
		$159,000
		$171,000
		$165,000
		None of these.