Bluebird Company uses a standard cost system under which overhead is applied on the basis of direct labour hours (DLH). The following information is summarized from its preliminary budget on manufacturing costs:

The flexible budget for total factory overhead can be expressed as

a. $ 17,250 +$7.85 per DLH

b. $105,000 +$5.90 per DLH

c. $105,000 +$5.75 per DLH

d. $105,000 +$4.40 per DLH

e. $172,500 +$4.40 per DLH

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Production activity 45,000 DLH 50,000 DLH Factory overhead: $135,000 $150,000 Indirect materials Indirect labour 96,000 100,000 Utilities 10,000 11,000 Rent 80,000 80,000 25,000 24,500 $370,500 Amortization 25,000 26,500 $392,500 Miscellaneous Total factory overhead