Multiple Choice Question 93

Swifty Corporation is planning to sell 770 boxes of ceramic tile, with production estimated at 700 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.75 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $14 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Swifty has 4300 pounds of clay mix in beginning inventory and wants to have 3500 pounds in ending inventory.

What is the total amount to be budgeted for direct labor for the month?

$8085

$117600

$7350

$29400