James Company manufactures t-shirts. During the year, it manufactured 250,000 t-shirts, using 2 hours of direct labor at a rate of $8.50 per hour. The materials and labor standards for manufacturing the t-shirts are:

Direct materials (6 yards of fabric @ $3 per yard)

$18

Direct labor (2.4 hours @ $8.00 per hour) 17

a.$750,000 F

b.$700,000 U

c.$700,000 F

d.$750,00 U