Your classmate asks your help in understanding how total budgeted costs are calculated at any level of activity. Calculate total budgeted costs at 30 000 direct labour hours, assuming that in the flexible budget graph, the fixed cost line and the total budgeted cost line intersect the vertical axis at \($36\) 000 and that the total budget cost line is \($186\) 000 at an activity level of 50 000 direct labour hours.
Reasoning 

The formula for the calculation is: Fixed costs + Variable costs (Variable costs per unit × Activity level) = Total budgeted costs.