Levis manufactures and sells denim jeans. Each pair of jeans requires 2 yards of cloth. Budgets for Levis for the following quarter are provided as follows:

Budgeted Sales Budgeted Production

January 5,000 jeans 6,500 jeans

February 7,000 5,500

March 10,000 12,000

Each pair of jeans requires 3.5 hours of direct labor, and the average hourly cost of Triste's direct labor is $10. Levis has a policy that requires the company to pay at least 25,000 labor hours worth of wages at a minimum each month. What is the total expense to be incurred by Levis in January according to the direct labor budget?

	A.	$192,500
	B.	$272,000
	C.	$227,500
	D.	$250,000