Kurt Inc. determined that cost of goods manufactured for the month of May was $440,000. They also reported beginning work in process of $85,000 and ending work in process of $103,800. If total manufacturing overhead applied for the month of May was $180,300 and prime costs were 80% of conversion costs, what was the amount of direct labor incurred for May? (Round your answer to the nearest dollar)

1. $348,125

2. $278,500

3. $98,200

4. $167,825

5. $222,800

6. $225,375

7. $144,240

8. None of the above