JK has budgeted sales for next year of 24,000 units and inventory levels are expected to remain constant throughout the year. Each unit produced will require 3 labour hours and the budgeted labour rate will be 15 per hour. It is estimated that 10% of units produced will be wasted.

It is expected that 85% of the total hours worked will be paid at the basic rates. 10% of the total hours will be paid at the basic rate plus an overtime premium of 50% of the basic rate. 5% of the total hours will be paid at basic rate plus an overtime premium of 100% of the basic rate.

The labour cost budget for next year is:

Select one:

A.

1,350,000

B.

1,306,800

C.

1,188,000

D.

1,320,000