Sanford 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 Purchasing 75,000 3 Number of purchase orders The budgeted inspection cost for 20 setups is: O a $175,860 O b. $34,000 Oc. $40,000 Od. $30,000