Regan Company operates its factory on a two-shift basis and pays a late-shift differential of 15%. Regan also pays a premium of 50% for overtime work. Because Regan manufactures only for stock, the cost system provides for uniform direct-labor hourly charges for production done without regard to shift worked or work done on an overtime basis. Overtime and late-shift differentials are included in Regans factory overhead application rate. The May payroll for production workers is as follows:

Wages at base direct-labor rates	$325,000
Shift differentials	25,000
Overtime premiums	10,000

For the month of May, what amount of direct labor should Regan charge to work-in-process?

• A.$325,000

• B.$335,000

• C.$350,000

• D.$360,000