Oriole Company is planning to sell 1300 boxes of ceramic tile, with production estimated at 1270 boxes during May. Each box of tile requires 42 pounds of clay mix and a 0.25 hour of direct labor. Clay mix costs $0.30 per pound and employees of the company are paid $10 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Oriole has 3800 pounds of clay mix in beginning inventory and wants to have 4500 pounds in ending inventory. What is the total amount to be budgeted for direct labor for the month?

$3175

$50800

$12700

$3250

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