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Producto Corp. is preparing its overhead budget. Budgeted fixed overhead amounts to $1,620,000. Budgeted variable overhead rate is $10 per direct labor hour. The company

Producto Corp. is preparing its overhead budget. Budgeted fixed overhead amounts to $1,620,000. Budgeted variable overhead rate is $10 per direct labor hour. The company estimates 20,000 direct labor hours and direct labor cost of $925,000.

Producto's total overhead budget is:

a.$2,500,000. b.$1,820,000. c.$1,600,000. d.$2,475,000.

Please show work and include explanations. Thank you!

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