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	28 000	40 000

Each unit of Handy Dandy requires 1 hour 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, and direct labour costs are estimated to be $5.00 per hour. What amount should be budgeted for direct labour in February?

A.

$160,000

B.

$140,000

C.

$146,000

D.

$134,000