On January 1, Bandy Manufacturing plans to introduce a product called Handy Dandy. The company plans to sell each unit of Handy Dandy for $25.00. Management has forecast the following in sales units for the first three months.

	January	February	March
Sales Units	35,000	30,000	40,000

Each unit of Handy Dandy requires 0.5 hours of direct labour. Management wants to end each month with a Handy Dandy inventory level equal to 10 per cent of the following month's sales. Direct labour costs are estimated to be $22.00 per hour. What amount should be budgeted for direct labour in February?

Question 16 options:

1)

$330 000

2)

$341 000

3)

$682 000

4)

$350 500