Mattison Company has developed cost formulas for the drivers of the following production activities:

Driver	Activity	Fixed	Variable
Labor hours	Materials	$ 0	$ 20
Labor hours	Labor	0	10
Machine hours	Maintenance	10,000	8
Machine hours	Machining	50,000	2
Number of setups	Inspections	30,000	200
Number of setups	Setups	0	300
Number of purchase orders	Purchasing	75,000	3

The budgeted inspection cost for 20 setups is

Group of answer choices

$30,000.

$40,000.

$175,860.

$34,000.