99) Hesterman Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit Budgeted unit sales (all on credit): April May June July Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Credit sales are collected: 40% in the month of the sale 60% in the following month 118 7,800 9,400 14,000 12,100 3 pounds $ 3.00 per pound 2.8 direct labor-hours $ 25.00 per direct labor-hour The ending finished goods inventory should equal 40% of the following month's sales. The ending raw materials inventory should equal 20% of the following month's raw materials production needs. The estimated direct labor cost for May is closest to: A) $786,800 B) $31,472 C) $534,000 D) $281,000