Accounting for Overhead

I don't know how 694,075 appears in answer. A management consultancy recovers overheads on chargeable consulting hours. Budgeted overheads were $615,000 and actual consulting hours were 32,150. Overheads were under-recovered by $35,000. If actual overheads were $694,075, what was the budgeted overhead absorption rate per hour? A $19.13 B $20.50 C $21.59 D $22.68 ANSWER $ Actual overheads 694,075 Under-recoverable overheads 35,000 Overheads recovered for 32,150 hours at budgeted overhead absorption rate (x) 659,075 32,150 x = 659,075 x = 32,150 659,075 = $20.50