A company has the following budget information: Sales: $118,800, COGS: $48.500: Depreciation expense: $1,500; Interest expense: $250; Other expenses: $41,880. If the company budgets 40% for income tax expense, the amount of budgeted income tax expense will be $ Feline Watch Company makes wrist watches out of silver metal sheets. Five hours of direct labor are needed to make each watch. Factory workers are paid $7 each hour. What are total direct labor costs to make 500 watches? $3,500 $17,500 $2,500 $20,000