Overhead question from studyhub

The fixed overhead absorption rate is $8 per direct labour hour.

The labour budget for this year is – skilled production $360,000
– unskilled production $180,000
– factory supervision $120,000
Skilled production workers are paid $4 per hour, unskilled workers are paid $3 per hour and supervisors are paid $6 per hour.

12. What is the budgeted fixed overhead for the year?

A.$660,000
B.$720,000
C.$1,200,000
D.$1,360,000
The correct answer is C.

Number of labour hours = ?3 6 0 comma 0 0 0 over 4 plus 1 8 0 comma 0 0 0 over 3? = 150,000

Therefore this year’s overheads = 150,000 × $8 = $1,200,000

My question is why have we not considered supervisor’s total labor hrs to calculate the total labor hrs? Is it because supervisor is not a direct labor but indirect labor and the question has specifically told us the overheads are absorbed per direct labor hrs?