Coles Corporation, Inc. makes and sells a single product, Product R. Three yards of Material K are needed to make one unit of Product R. Budgeted production of Product R for the next five months is as follows:

August	14,000	units
September	14,500	units
October	15,500	units
November	12,600	units
December	11,900	units

The company wants to maintain monthly ending inventories of Material K equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 2,500 yards of Material K were on hand. The cost of Material K is $0.85 per yard. The company wants to prepare a Direct Materials Purchase Budget for the rest of the year.

The total needs (i.e., production requirements plus desired ending inventory) of Material K for November are:

Multiple Choice

• 37,380 yards

• 37,800 yards

• 44,940 yards

• 45,360 yards

Tracie Corporation manufactures and sells women's skirts. Each skirt (unit) requires 2.2 yards of cloth. Selected data from Tracie's master budget for next quarter are shown below:

	July			August		September
Budgeted sales (in units)	7,000			9,000		11,000
Budgeted production (in units)	8,000			10,500		13,000

Each unit requires 0.8 hours of direct labor, and the average hourly cost of Tracie's direct labor is $18. What is the cost of Tracie Corporation's direct labor in September?