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 activity levels are projected to be as follows:

Labor hours	1,000
Machine hours	5,000
Setups	100
Purchase orders	50

What is budgeted for this projected activity level?

a.$1,655,430

b.$295,150

c.$3,504,450

d.$165,543