Montgomery Company has developed the following flexible budget formulas for its four overhead items: Overhead item Fixed Cost Variable rate per direct labor hour Maintenance $10,000 $ 3.00 Power $ 1,500 $ 0.30 Indirect labor cost $12.00 Equipment lease $ 7,000 Total $18,500 $15.30 Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however, this year 19,000 units were produced with the following actual costs: Overhead item Actual costs Maintenance $14,000 Power $ 2,200 Indirect labor cost $70,000 Equipment lease $ 7,000 Total costs $93,200 The total budgeted overhead for an expected activity level of 10,000 units is: a. $12,400. b. $124,000. c. $64,400. d. $139,400. e. None of these choices are correct.