Question
Oriole Company is planning to sell 1100 boxes of ceramic tile, with production estimated at 470 boxes during May. Each box of tile requires 44
Oriole Company is planning to sell 1100 boxes of ceramic tile, with production estimated at 470 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.50 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $15 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Oriole has 4900 pounds of clay mix in beginning inventory and wants to have 3800 pounds in ending inventory. What is the total amount to be budgeted for direct labor for the month?
$56400
$14100
$8250
$3525
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